The Volvo ES90 may be new, but it could end up being irrelevant in Denmark because it is built in China and is therefore hit by sky-high tariffs.
The Volvo ES90 is expected to be an expensive affair on the Danish market, as the car is built in China.
For the same reason, the car is automatically subject to the punitive tariffs that the EU imposes on all Chinese electric cars.
At the launch of the Volvo ES90 in Sweden, Volvo's CFO Johan Ekdahl admitted that he had no idea how expensive the car would be either.
"We'll see what the tariffs end up being," he told news agency TT .
Volvo presented the electric car ES90 outside an art gallery near Stockholm. And here the management had to answer questions, including about the trade war between the EU and China.
Volvo ES90 could become a rage in Denmark
As a Chinese brand, Volvo is subject to a 18.8 percent tariff. However, its parent company, Geely Holding, has already moved EX30 production to Ghent, Belgium, in an attempt to avoid the tariff.
However, there are no reports as to whether the ES90 will also be built in Europe.
The trade war is not just affecting Volvo, however, but is hitting the automotive industry in general. The US already has a 102.5 percent tariff on Chinese electric cars. After several downward adjustments, the EU has imposed a permanent punitive tariff of 18.8 percent against Geely and Volvo Cars.
Johan Ekdahl noted that tariff rates vary and there may be a combination of facts and negotiation tactics.
The production of the Volvo ES90 takes place in Chengdu, China. And that makes it difficult, regardless of management's opinion, to keep the price down.
In Sweden, where the car can already be ordered online, it costs from 970,000 kroner. This corresponds to 659,000 kroner in Denmark. And if it is similar to the price here, the car is so expensive that the state will charge a registration fee.
One option would be to produce the ES90 in Charleston, South Carolina, to avoid the US tariffs, but Volvo has not yet announced such a plan.
The ES90 is primarily designed for the Chinese market, where there is demand for large cars.
"It's an important car in China, and we have a pretty strong position in sedan models in China. There are also other countries, such as the UK, that have no tariffs," said Johan Ekdahl.
The Volvo ES90 is built on the same platform as the already problematic EX90 SUV. For the same reason, the sedan model has been delayed several times.
The ES90 has a range of 700 kilometers and can charge 300 kilometers in ten minutes. But despite its relationship to the EX90, the sedan model is a lighter car.
The ES90 is offered with rear-wheel drive or all-wheel drive. It is the rear-wheel drive version that will initially come to Denmark. The importer expects it to arrive sometime in 2026.
