Volvo quietly raises EX90 prices, removes LiDAR and

Volvo said the price increase was due to rising material costs and said the missing features would be added later via software updates.

Volvo has yet to start deliveries of the all-electric EX90 in the United States, but it has already raised prices to over $81,000 while revealing that local models will lack a host of safety features when they launch.

When first announced, Volvo Cars said the EX90 would start at $77,990 in the U.S. But the price has since risen to $81,290, including a $1,295 destination charge, a $3,300 increase. Joe Origoni, Volvo Cars’ U.S. customer service director, said the price change took effect May 1.

Read: Volvo finally starts US production of EX90 electric SUV after resolving vehicle issues

Volvo spokeswoman Sofia Doerr told Automotive News that the price increase was due to higher material costs. Pre-order customers were reportedly notified of the price change on June 26, and Doerr said that “no firm orders or non-refundable deposits had been placed” before the price increase.

Missing Features

It’s not just the price hike that’s going to upset customers. The US-made EX90 will initially launch without LiDAR, lack two unspecified driver assistance programs, and won’t initially support two-way charging.

Volvo says these features will be available later via software updates. This means the EX90 will have the LiDAR hardware but it won’t be enabled. Volvo promises to add the missing features during “early ownership.”

Speaking about the ability to add safety features wirelessly, Volvo CEO Jim Rowan said customers understand the move.

“The whole point of a software-defined car with over-the-air updates is to continually upgrade the software. We can do that,” he said. “I think customers who invest in advanced technology products like the EX90 fully understand that and they will reap the benefits over time.”

Although the price increase is modest, at least one Volvo retailer expects the move to trigger order cancellations.

“It will give potential buyers pause and think, ‘Do I really want to do this at this time, given the state of the economy, interest rates and the uncertainty of the (presidential) election?’ ” they said. “I am not in favor of anything that changes the likelihood of someone moving forward (with an order) because their decision is already up in the air.”