Volvo announced on Monday that it will recall over 40,000 flagship all-electric EX30 SUVs due to the risk of battery overheating. The affected vehicles include 40,323 EX30 models equipped with high-voltage batteries in both the Single Motor Extended Range and Twin Motor Performance versions.
The Swedish automaker, majority-owned by China’s Geely Holding Group, introduced the EX30 as a crucial model to compete with lower-priced Chinese brands. Battery safety is a highly sensitive issue for electric vehicle manufacturers and consumers alike.
The recall aims to replace modules in the compact SUV’s high-voltage battery pack. These batteries are produced by Shandong Geely Sunwoda Power Battery Co., a joint venture of Geely. The supplier has resolved the issue and will provide new battery units for the affected vehicles, with Volvo reaching out to inform owners about the next steps.
Following the recall announcement, Volvo’s stock price dropped by 4%. The company will replace the affected battery modules free of charge and advises owners to limit charging to 70% to mitigate fire risks.
Regulatory documents and company statements indicate that since December last year, Volvo has instructed EX30 owners in over a dozen countries, including the US, Australia, and Brazil, to park their vehicles away from structures and limit charging to 70%.
Sam Fiorani, Vice President of the Global Automotive Forecasting Division at AutoForecast Solutions, highlighted the importance of resolving the issue for Volvo with the EX30 being a key model for the company.
Andy Palmer, a veteran in the industry who led Nissan’s launch of the Leaf electric car in 2010, noted the limited margin for error Volvo faces compared to competitors, as safety reputation is core to the brand.
Palmer stated, “Volvo cannot afford safety issues as it would undermine their brand core.” However, rectifying battery issues may come at a high cost.
In 2020, General Motors recalled 140,000 Chevrolet Bolt vehicles due to fire risks associated with batteries supplied by LG Electronics, incurring repair costs of up to $2 billion.
According to an analysis by Reuters, the cost of Volvo’s new replacement battery modules could reach $195 million, excluding logistics and repair expenses. Volvo stated that these figures are speculative and is negotiating with the supplier.
Two EX30 owners interviewed by Reuters expressed concerns about the recall. Matthew Owen from the UK chose the EX30 for its range and Volvo’s safety reputation, urging the automaker to take responsibility for “producing a dangerous car.”
Tony Lu, an EX30 owner from New Zealand, highlighted how the charging limit regulation reduces the car’s range, effectively increasing costs. He expressed willingness to sell the car back if possible.
(Adapted from Reuters)