CES 2026 and the Automotive Industry's Reckoning

BY PAUL WAATTI, DIRECTOR OF INDUSTRY ANALYSIS

CES 2026 didn’t feel like a traditional auto show, and unlike recent years, vehicle launches weren’t a priority. Instead, the focus shifted toward signaling long-term direction, mostly through supplier partnerships rather than new sheetmetal. The only automakers with a meaningful footprint on the show floor were Sony Honda Mobility’s Afeela, and Chinese brands, Geely (Zeekr, Lynk & Co, Geely) and Great Wall Motors, with visibility that was impossible to ignore. In the absence of other OEM stands, Chinese automakers leaned in, broadcasting brand messaging and framing how they think about technology, speed, and scale. More than symbolism, it reflected a growing confidence in software-first, vertically integrated development as a competitive advantage, not a future ambition.

CES 2026 reflected that SDVs and AI are not part of the future automotive landscape, but are here and already transforming automotive.

This year’s show reinforced just how quickly software-defined vehicles and AI are becoming ubiquitous in the automotive world, with these transitions already embedded in OEM product roadmaps. What’s changed even more is the tone of the conversation. The emphasis has shifted to execution strategy and to managing the transition without blowing up cost structures, development timelines, or organizational complexity. Increasingly, suppliers are setting the pace, and CES emphasized this with a spotlight on architecture and ecosystems rather than individual vehicle showcases.

That framing matters when looking at Qualcomm’s growing automotive presence, which stood out as pragmatic and timely. Rather than leaning only into distant autonomy narratives or abstract AI concepts, Qualcomm focused on how things actually work in today's production vehicles. The emphasis was on convergence, and that cockpit systems, driver assistance, connectivity, and AI workloads can coexist on shared compute platforms without forcing OEMs into all-or-nothing architectural bets. The message was (refreshingly) less about where the industry might be in a decade, and more about what can realistically ship over the next product cycle.

That message came through most clearly during a live ride demo in a Lincoln Aviator equipped with Qualcomm’s Snapdragon Ride Flex platform. The system simultaneously managed Level 2 highway assistance, driver monitoring, high-fidelity 3D navigation, media playback, and AI-driven voice interaction, without noticeable lag or awkward prioritization between safety-critical and non-safety functions. The user interface didn’t feel constrained when ADAS was active, and the driving system didn’t behave as if it were isolated from the rest of the vehicle. From the passenger seat, there wasn’t a single feature that took priority. The takeaway wasn’t extreme performance. It was how unremarkable and seamless the coexistence felt in real driving — and that, in this case, was the point.

Qualcomm’s demonstration of its Snapdragon Ride Flex platform, featuring ADAS, cockpit, and semi-autonomous drive capabilities on a single SoC, showed how much advanced and intelligent capability is possible in such a cost-effective platform.

Just as important was what wasn’t in the vehicle. The sensor suite was intentionally mainstream and cost-conscious, consisting of a single forward camera, radar, and a driver-monitoring system. No lidar. No excessive redundancy. No sense that the demo depended on premium-only hardware to function. Qualcomm’s approach is that this configuration could be scaled up or down depending on the vehicle’s positioning, supporting entry-level ADAS, premium hands-free systems, or more advanced luxury applications. That adaptability positions Qualcomm’s strategy to have significant volume potential that spans price bands and global portfolios.

In automotive terms, that’s a meaningful shift. For years, the default response to complexity was separation — dedicated ECUs for ADAS, infotainment, clusters, and body functions, all validated independently and stitched together late in the process. That approach drove cost, wiring mass, and integration risk. Qualcomm’s demo instead showed how a practical, scalable configuration behaves when multiple workloads share compute resources, without compromising safety or responsiveness.

Partnerships with suppliers (like this ZF partnership for a scalable ADAS and autonomous drive platform) helps get innovation into the market faster.

This simplification-as-a-competitive-advantage theme ran through Qualcomm’s broader CES messaging. Partnerships with suppliers like ZF highlighted faster deployment paths. Central compute concepts with OEM partners emphasized consolidation without forcing a single software identity or brand experience. The throughline was flexibility, through a platform and technology suite designed to meet OEMs where they are today, while supporting continuous, incremental improvement and deliberate scaling across vehicle segments and price points.

Crucially, none of this is theoretical anymore. Qualcomm pointed to real-world deployments and co-development programs already moving in this direction. Its work with BMW on the upcoming iX3 reflects a full-stack approach spanning ADAS, driver monitoring, and software integration that leverages shared data across domains. Similar principles are evident in Qualcomm-enabled programs like Afeela 1 — the only press conference at the show directly related to a production vehicle — and in Chinese OEMs like LeapMotor, where centralized compute consolidates multiple vehicle domains under shared architectures. These are production strategies in play (or soon to be) rather than a future aspiration.

Much of the innovation behind all-new BMW iX3 is powered by Qualcomm’s Snapdragon Ride Platform.

CES also underscored how OEMs themselves are pushing toward centralized compute as a strategic imperative. Trailing similar announcements from GM and Rivian in late 2025, Ford highlighted its own in-house development of a centralized vehicle compute platform, positioning software and system architecture as core competencies rather than outsourced functions. While distinct from supplier-led platforms, Ford’s approach reinforces the same underlying reality that software-centric vehicles will increasingly be built on fewer, more capable compute foundations, with OEMs and suppliers arriving at similar architectural conclusions from different starting points.

The show also helped frame the contrast between leading compute platform providers, such as Qualcomm and NVIDIA. NVIDIA remains a dominant force in the high-end of automotive compute, with a focus on physical AI, large-scale simulation, and comprehensive autonomy development. That strength is particularly visible in autonomous mobility deployments such as the Zeekr–Waymo robotaxi platform, where AI systems trained and validated in real-world environments are beginning to move from proof-of-concept into early commercialization, albeit within constrained geographies and operating domains.

NVIDIA’s Drive Hyperion Ecosystem enables various levels of autonomous driving, with a new focus on autonomous robotaxis.

Qualcomm’s aim is broader and deeper — focused on mass-volume penetration across global vehicle portfolios spanning the range from affordable entry level to high-end bleeding edge. That divide is already visible in the numbers: Qualcomm’s automotive business now generates roughly twice the revenue of NVIDIA’s and is hovering above $1 billion per quarter, reflecting its sheer scale rather than concentrated, high-end programs. In today’s margin-constrained environment, owning the floor through reach and execution increasingly matters more than defining the ceiling.

Other players reinforced fragmentation. Mobileye emphasized scaling hands-free, eyes-on ADAS through tightly integrated systems designed for mass adoption. MediaTek leaned into cockpit compute and immersive in-car entertainment, underscoring how competitive the cabin experience has become. Valeo showcased its expanding role as a system-level Tier-1, demonstrating integrated sensor fusion, in-cabin perception, and software within a broader SDV ecosystem that bridges safety, UX, and regulatory needs. Bosch, meanwhile, focused on extending AI into existing vehicle architectures, acknowledging that many automakers need evolutionary upgrades to current and next-generation ICE and hybrid platforms rather than a clean-sheet reinvention. The industry isn’t converging on a single solution — it’s splitting along lines of deployment speed, cost tolerance, and architectural aim. Crucially, amid all this fragmentation, Qualcomm’s demos were among the most comprehensive and tangible in the automotive section of CES. While others showed off new hardware, software, and AI applications, Qualcomm’s display pulled it all together, showing how it integrates it all into the modern automobile.

The show’s tone marked a subtle but important shift in automotive storytelling. The EV narrative faded into the background, and autonomy rhetoric became more measured. The spotlight moved toward deployable ADAS, practical in-vehicle AI, and platforms that can be sustained and improved over a vehicle’s lifecycle. The strong presence of Chinese OEMs reinforced the urgency that speed, vertical integration, and platform reuse are no longer optional advantages — they’re competitive requirements.

CES 2026 ultimately showed that the industry’s challenge is not ambition, but execution. And Qualcomm has new and innovative executions, as evidenced by Qualcomm’s Flex SoC demo, which wasn’t about what might be possible someday. It showed what’s ready from Qualcomm today, and Flex is already appearing in production models. A mainstream sensor suite. Shared compute. Mixed-criticality workloads. A platform that scales from entry-level vehicles to luxury applications without constant reinvention. The next phase of competition at the OEM and supplier level will be decided by who can deliver real-world solutions at cost, at scale, and now – and Qualcomm is enabling the ecosystem to make that a reality.

What We Saw and Learned at CES 2026

By Paul Waatti, Director of Industry Analysis

At CES 2026, it was clear the auto industry’s next phase hinges not on new vehicle launches, but on how well OEMs and suppliers scale software, autonomy, and AI-enabled systems in practical settings. This year, the show shifted from traditional product debuts to a focus on compute architectures, software platforms, and “physical AI” — the blend of autonomous driving, robotics, and advanced perception systems. CES’s evolution away from the traditional auto show is evident. OEMs now use their presence to signal long-term strategy, not just highlight near-term products.

The composition of OEM participation stood out. Aside from Afeela, only Chinese automakers — Geely and Great Wall Motors — maintained true vehicle-centric displays. This highlighted a key difference: Chinese OEMs see CES as a global stage for technology and branding, using it to present themselves as software-forward, vertically integrated mobility players. In contrast, most Western OEMs minimized their footprint or were absent from the show floor altogether. This shift signaled that CES is now more about ecosystem, not just direct product competition. 

Geely showcased Zeekr, Lynk & Co, and Geely brand vehicles for media test drives at the Las Vegas Motor Speedway. Geely’s head of PR officially told the media about plans to enter the U.S. market, stating that an announcement will be made (at the very least) within the next 24–36 months, likely via Volvo’s South Carolina plant. This signaling, especially given Geely’s scale, capital, and expanding footprint, is noteworthy.

Autonomous mobility, especially robotaxis, was the most mature theme at CES. In past years, the discussion centered on technical feasibility. This year, talk shifted to scaling economics, reliability, and deployment speed. Waymo’s new Zeekr-based platform showed that autonomy leaders now focus on standardization, serviceability, and expanding into new regions. The push for fleet readiness widened the gap: some already run commercial services, while others are still test pilots. The edge in autonomy comes from uptime, learning speed, and cost discipline, not just capability claims.

Hyundai’s CES presence reinforced the idea that some OEMs now define mobility by technological capability rather than just by vehicles. Hyundai showed no production or concept cars; instead, it spotlighted robotics through its ownership of Boston Dynamics. It positioned humanoid and industrial robots as central to strategy in manufacturing, logistics, and mobility. The absence of vehicles was a deliberate signal: Hyundai sees autonomy, robotics, and AI as the base for strategies beyond the car.

Ford talked about future eyes-off capability tied to an affordable EV platform. The message: automation must grow beyond premium cars to reach scale. Multi-year timelines show near-term progress will come from advancing ADAS. These gains include broader operating domains, fewer disengagements, and clearer consumer communication, rather than sudden leaps in autonomy.

Many strategies highlighted the importance of centralized compute and software-defined vehicle architectures. At CES, key requirements for next-gen platforms emerged: simpler ECUs, constant over-the-air updates, and a unified vehicle "brain." BMW made a North American debut of the iX3 in an expansive display in the plaza, featuring its Qualcomm co-developed software and compute stack. This display showed BMW’s intent to push centralized processing and integration in its evolving digital architecture.

A similar architectural narrative surfaced around the Mercedes-Benz CLA and the U.S. debut of the GLC, which was widely associated with next-generation vehicle compute and autonomy capabilities built on Nvidia’s automotive platforms. 

The implication from the German brands was clear: premium OEMs increasingly view high-performance, centralized compute as essential not only for automated driving, but also for long-term software differentiation, in-cabin intelligence, and lifecycle feature expansion. Together, these examples highlighted how competitive differentiation is increasingly shifting toward platform ecosystems rather than discrete technologies.

This year’s show also pointed to a more pragmatic view of electrification, particularly in supplier messaging. Bosch emphasized electrification as a spectrum, not a binary transition. It highlighted hybrids, plug-in hybrids, and range-extender solutions as bridge technologies well into the 2030s. Bosch’s AI Extension Platform enables OEMs to add software-defined capabilities to existing or next-generation ICE-based architectures. This supports centralized compute, AI-driven functions, advanced ADAS, and by-wire integration without needing a clean-sheet BEV platform. Bosch positioned the platform as a practical bridge, enabling OEMs to modernize electronics, deploy SDV faster, and spread development costs across mixed-propulsion portfolios.

CES 2026 marked a clear inflection point in the industry’s technology narrative. OEM vehicle displays were limited, while Chinese brands were the most visible participants, reinforcing how CES has shifted from a product showcase to a forum for strategic positioning. Companies such as Hyundai, BMW, Mercedes, and Ford used the show to communicate long-term direction through platforms, software stacks, and ecosystem partnerships rather than individual vehicle launches. 

The competitive message from CES was implicit but consistent: differentiation is moving away from model-level innovation toward the ability to deploy and sustain AI-driven software and platform capabilities at scale. Over the next five years, success will hinge less on access to advanced technologies and more on execution — specifically the integration, validation, cost management, and organizational alignment required to deliver reliable systems across vehicles, factories, and fleets.

Rivian's Autonomy & AI Day Shows a Vertically Integrated and AI-Defined Future for the Startup Automaker

By Ed Kim, President and Chief Analyst

Rivian has been one of the most talked-about startup automakers in recent years. It successfully launched the R1 series to great critical and customer acclaim, it has brought many new innovative features to market, its infotainment software work is so good that none other than Volkswagen has partnered with them to develop the German automaker’s next generation software, and it’s about to launch its make-or-break high volume model, the R2, a smaller and more affordable electric SUV that will bring Rivian to the masses.

But Rivian is no traditional automaker, and the company clearly understands that the future of automotive is so much more than just powertrains, platforms, and sheetmetal. The future of automotive is rooted in technology, and Rivian has made technology leadership a core foundation of the company. Already, Rivian has shown its technology expertise through its high-performance EV powertrains and infotainment executions that are among the few in the West that can rival many of the systems in Chinese market vehicles.

Toward the end of 2025, AutoPacific traveled to Rivian's Mountain View, CA facility to attend the announcement of the next wave of Rivian technology innovations at its Autonomy & AI Day event, and the news didn’t disappoint. In a nutshell, Rivian is going big on AI-powered autonomous drive features and eventually full Level 4 autonomy that is largely enabled not only by in-house software, but in-house hardware too, including its very own silicon - something that the vast majority of automakers do not do.

Let’s start there. Rivian announced its new Rivian Autonomy Processor (RAP1), its in-house developed silicon. It powers Rivian’s third-generation autonomy computer called Autonomy Compute Model 3 (ACM3). RAP1 uses in-house developed AI trained by Rivian’s own Large Driving Model (LDM), which is much like a Large Language Model (LLM) used to train AI, but for self-driving. Later this month, Rivian’s post-2025 R1 models (called second generation by Rivian, but more of a mid-cycle enhancement) will get “Universal Hands-Free” via an OTA update that will greatly expand these models’ hands-free capabilities from 150,000 miles of highway today to 3.5 million miles of both highway and local streets. Much of this is enabled by AI; Rivian says that as long as there are marked lines on the highway or street, Universal Hands-Free can figure it out. It’s packaged as Autonomy+, and it will cost $49.99 a month, or a flat one-time cost of $2,500.

On the R1 and on early R2 models, hands-free driving is still L2+, meaning that while the driver does not need to keep their hands on the wheel, they must keep their eyes on the road and be able to take over anytime. Later in 2026, R2 models will gain Lidar cleanly mounted just above the windshield header, which will enable point-to-point hands-free driving, eyes-off driving, and personal L4 autonomy.

What is personal L4? It’s L4 that’s for the vehicle owner, rather than current L4 implementations designed for shared robotaxi applications. Personal L4 will allow the Rivian owner to have their vehicle pick up groceries or take their kids to school, all without anyone in the driver’s seat. If today’s biggest luxury is time, then personal L4 could be one of the most important luxury features ever devised for a vehicle.

AI also powers Rivian Unified Intelligence (RUI), allowing far more seamless interactions between the driver and vehicle. The LLM data foundation allows for truly conversational interactions that involve multiple commands and clarifications, and it will also be able to have the vehicle seamlessly interact with third-party apps; Google Calendar will be the first to be have integration with RUI.

It’s certainly unusual for an automaker to tackle all these traditionally non-automotive technology areas in-house, begging the question as to why Rivian would go this route. Simply, Rivian says that this level of vertical integration enables much faster development times since they aren’t going back and forth with outside hardware and software development partners, and it allows Rivian to evolve all these features and technologies in a much more holistic way that keeps the continued evolution of entire vehicle experience in mind, rather than just being focused on individual features and technologies.

It also potentially makes Rivian an automotive technology supplier. Rivian officials at the event mentioned that the company would be willing to sell its technologies to other automakers, and certainly Rivian’s current partnership with Volkswagen to develop software adds legitimacy to its stated abilities. Of note: all of the technologies that Rivian announced are Rivian’s own intellectual property that is not shared with Volkswagen. Volkswagen is certainly free to buy these technologies from Rivian, but the current agreement between the young upstart and the veteran German automaker does not include the sharing of any of them.

In the end, Rivian is going down a brave path that does seem achievable. Its growth goals are more ambitious compared to most of the Western startups we’ve seen because they comprise so much more than just selling lots of electric vehicles. Rather, Rivian aims to be at the forefront of automotive technology, particularly in the fields of AI, autonomy, and even hardware and software. Embracing technology as a core tenet of automotive served Tesla well over the years, and it’s serving many of the newest Chinese automakers well, too. Those Chinese automakers aren’t in the U.S. market yet, and trade tensions between the two economic giants mean they won’t be here for some time. This provides Rivian with lots of untapped white space in North America, and provides Rivian with not only vertically integrated vehicles, but a more diversified business as well.

From AutoPacific’s perspective, Rivian is making smart moves by taking leadership positions in automotive technology development to help ensure its survival in a market that is currently brutal to both EVs and startup automakers.

What We Saw and Learned at the 2025 Los Angeles Auto Show

Last week, the AutoPacific team was on the ground for the 2025 Los Angeles Auto Show. While the schedule of on-site press conferences may have been relatively lighter compared to prior years, there was still an eclectic mix of new and updated products under the lights on the show floor. Here's the download on some of our highlights.

Expectedly, the Koreans appear to have swept the L.A. Auto Show once again, with a handful of new debuts from Hyundai, Kia, and of course, Genesis. Hyundai kicked things off with the reveal of its facelifted IONIQ 6, specifically, an introduction of the hotter IONIQ 6 N that arrives as the second N-badged e-GMP product in the lineup next year for our 2026 MY. Draped in the N division's familiar sky blue paint, the even sleeker (thanks to new sheetmetal at both ends) sedan's dual-motor AWD footprint was retuned to make an astonishing max 641 horsepower and 568 lb-ft of instant torque. Like the IONIQ 5 N, the IONIQ 6 N hits the gym with a full suite of various software tricks and gizmos to transform its driver into a drift king or track slayer with a few button taps. There are wider fenders, massive brakes at the pointier nose, and a unique swan neck rear wing. Down below, the IONIQ 6 N's chassis is beefed up and fortified for swift precision, and a set of integrated stroke sensors rewards a greater real-time adjustment of suspension dampening. Range numbers from its 84 kWh battery pack and pricing are still a mystery, but we'd expect it to start in the high $60,000 or low $70,000 area.

Hyundai also used its spotlight to reveal a new concept called the "Crater". Despite being shown in fictitious concept format, the Crater's brute and rugged, almost apocalyptic styling and clever features (like side mirror housings that, when removed, double as flashlights or action cameras), we predict, given rumblings we've heard about Hyundai Motor Group wanting to elevate its XRT-badged products into more rugged off-roaders, this concept foreshadows what's ahead for more hardcore versions of the Tucson crossover and even Santa Cruz pickup truck. Inside, the Crater's cabin was a playful mix of tactile switchgear, utilitarian design, and 8-bit influences.

After a generously profitable first generation, Kia debuts its all-new second-gen 2027 Telluride. Kia has a lot of successes learned from the first generation of its popular family hauler, and the new model makes some big changes. Under the hood and a contrast to the also-just-shown new 2026 Palisade, gone is the Telluride's 3.8L V6, replaced by either a turbocharged four-cylinder that the automaker pegs as being more powerful and efficient, or, in a first for the nameplate: hybridization. The new hybrid system, Hyundai Motor Group's TMED-II, sandwiches a pair of electric motors in the transmission itself to help return in the right configuration as high as 35 mpg and upwards of 600 miles of travel allowance on a single tank of gas. The bigger-than-before redesigned Telluride sports even more sharp, expensive-looking exterior styling, cloning it closer and closer to that of a Range Rover, swapping rounder fascias and actual door handles for stubbier bumpers and flush-mounted extenders that power deploy upon approaching. The cabin ditches physical switchgear for a more elegant appearance and space rich in higher-rent but more sustainable materials. And, with a more capable, upgraded X-Pro trim, the most rugged trim of the second-gen Telluride boasts 9.1 inches of ground clearance, revised bumpers, a tuned AWD system with locking differential, and proper knobby all-terrain tires.

Keeping within the Hyundai Motor Group wheelhouse, over at Genesis, the luxury marque is having a hell of an exciting month. On the other side of the globe, Genesis officially, after a year or so of tease, revealed its Magma motorsports arm in Paris via a showing of the Magma GT Concept (as the brand reportedly aims to homologate its upcoming GT4 racer for Le Mans) and a gorgeous wagon variant reportedly built as a one-off for a wealthy customer in the Middle East. On our shores, we got to see the first salable Magma product: the 2026 GV60 Magma. Beyond bright orange and muscular styling enhancements, the GV60 Magma engages drivers with a dual-motor footprint whose output is cranked to make no less than 650 horsepower in "Boost" mode. All that power is supported by an intense suspension and chassis overhaul (it sits 20 mm lower on wider tires), has a limited-slip differential, heavy-duty bushings at both ends, and, like the nearby IONIQ 6 N: a myriad of more intimate driving modes for spirited driving. Pricing and range are also unknown at time of press.

The other major reveal that took place around the time of the 2025 Los Angeles Auto Show was Jeep's electric Recon, which we got our first glimpse at an off-site event before its showfloor presence. With Rivian in its cross-hairs, Jeep is banking on the 2026 Recon to reap a crop of fun-minded, off-road-intrigued buyers with Wrangler-esque capability, cool features (like rear window panels that come out), and an evident appeal to those with active lifestyles within and beyond the realms of pavement. There's a lot to like about the Recon, which sits atop the same STLA Large roots as the softer, road-prioritized Wagoneer S. The youthful nameplate, which goes on sale next year, aims to bring pure-BEV 4x4 prowess and happenings to the masses, but there obstacles ahead that cannot be ignored amidst today's rocky EV market, including a range below 300 miles, price tag north of $65,000, and, Stellantis's problematic track record when launching new EVs. If the Recon can navigate these potential roadblocks, it has the potential to be a smash hit (albeit a niche hit) for not just Jeep but Stellantis as a whole.

Apart from these showstoppers, we were able to briefly meet-n-greet Nissan's new Rogue Plug-In Hybrid, facelifts of the Jeep Grand Wagoneer and Grand Cherokee (as well as the new all-hybrid Cherokee), Chevrolet's revived budget-friendly 2027 Bolt, to name a few. Rivian's upcoming R2 also welcomed crowds, as did the Honda Prelude. Lucid also proudly had the latest new Touring trim for its 2026 Gravity on display, lowering the price of entry into the three-row crossover to a now more approachable MSRP below $80,000 without any major range or performance penalties.

Before and after the show's media day, AutoPacific also attended private off-site events marking the grand opening of a new Beverly Hills showroom for Sony Honda Mobility's Afeela brand, as well as a celebratory update for newcomer Slate, where we got to crawl around and peek inside the small DIY-friendly electric truck. We look forward to sharing those insights soon.

Our Thoughts: 2026 Hyundai Palisade Hybrid First Drive

by Robby DeGraff, Manager of Product and Consumer Insights

Consumers are hungry for hybrids these days; that’s not a secret, especially those eyeing up the Hyundai brand for their next vehicle, as our AutoPacific data shows. Nearly 60% future Hyundai buyers who told us in our 2025 Future Attribute Demand Study (FADS) that they're planning to acquire a three-row XSUV/SUV...would consider one with hybridization. As we've seen with other automakers, like Toyota and Lexus, it pays to have a strong hybridized player in this segment.

What made my trip last week in Texas to briefly drive the Hyundai’s new 2026 Palisade Hybrid was that it was actually my first time ever driving the latest redesigned Palisade. All in all, Hyundai (again) knocked it out of the park, transforming its popular three-row family hauler into an even better and more appealing product. Offering one in this format that returns upwards of 34 mpg in the right spec without any compromises is a big money-making win. The practicality is still there (thanks to the battery pack being mounted behind the front passenger’s seat and not in the cargo area), the upscale driving experience is still there, and the performance is better.

Being a design nerd, I could probably write a novel about how much I'm obsessed with the design of the latest Palisade, inside and out (like its bold chrome D-pillar motif and the Calligraphy trim's leather and faux-wood covered scalloped dashboard that curves around to meet the doorcards). It appears much classier, it's bigger than the prior generation Palisade, and the lounge-like interior is truly a very comfortable, spacious, and relaxing place to be, whether in treacherous bumper-to-bumper Austin rush hour traffic or lost amidst the Texas hillside country.

Down to the nuts and bolts: The new hybrid system, Hyundai Motor Group's TMED-II, affixes two electric motors to the Palisade's six-speed automatic, making it more powerful, quicker, and premium to drive. The battery pack isn't plopped below the cargo floor, sacrificing usability; rather, it's cleanly tucked away ahead of the second row passenger's side bucket seat. It's possible to travel 500+ miles on a full tank, the transition between gas and electric is seamless and smooth, plus Hyundai told me a buyer would hypothetically make up the ~$2k upcharge for the hybridized powertrain in 1.5 years. Steering was responsive, with "Sport" mode firming up your grip in the wheel, and while we only embarked down a few dirt roads, the now-electrified AWD footprint is said to be a bit more capable. I'm excited to see this TMED-II proliferate across other Hyundai models and into other HMG brands.

My biggest complaint (and as of now only complaint) was where they put the gear selector: a stalk mounted precariously low on the steering wheel. My right knee was constantly striking it while driving, which was really disappointing. Tall adults, including my 6’2” self, beware.

Overall, standing ovation here, Hyundai. I look forward to spending a full, thorough week testing and seeing what kind of real-world mileage I can get out of the new Paliasde Hybrid.

Our Thoughts: 2026 Polestar 4 First Drive

By Paul Waatti, Director of Industry Analysis

After driving the Polestar 4 in Austin, TX, I came away convinced this is the brand’s most cohesive product yet — distinctive in design, engaging to drive, and more focused than spec sheets suggest. Still, like Polestar itself, the 4 faces a few growing pains. It is an accomplished EV that feels ready for primetime just as the U.S. market moves into a tougher, unsubsidized reality.

The Polestar 4 may be the company’s most striking design to date. Its proportions defy easy classification: lower and sleeker than a crossover, broader and more planted than a sedan. The absence of a rear window remains its boldest visual and functional statement. A roof-mounted camera now handles rear visibility, a decision that at first feels odd but quickly becomes natural. The trade-off yields a cleaner silhouette, improved aerodynamics, and an expansive glass canopy that floods the cabin with light.

Polestar’s “Pure, Progressive, Performance” mantra comes alive here — minimalism with intent. The surfacing, stance, and lighting signatures look every bit the Scandinavian interpretation of performance design. The 4 projects quiet confidence rather than visual aggression, an aesthetic maturity that finally differentiates Polestar from its Volvo roots. Underneath, the 4 rides on Geely’s SEA platform with a 100 kWh CATL cell-to-pack battery and 400-volt architecture — shared with Volvo’s EX30 as well as Zeekr’s 001 and X. This common foundation underscores the flexibility of Geely’s modular EV toolkit, though Polestar’s adaptation appears the most cohesively tuned toward driver engagement within that family.

Two variants define the lineup:

• Long Range Single Motor RWD: 272 HP, 253 lb-ft, 0–60 mph in 6.9 seconds, EPA range 310 miles, towing 2,000 pounds.

• Long Range Dual Motor AWD: 544 HP, 506 lb-ft, 0–60 mph in 3.7 seconds, EPA range 280 miles, towing 3,500 pounds.

Polestar’s engineers tuned the chassis to emphasize precision over softness. The single-motor model uses coil springs and passive dampers with rebound coils. The dual-motor upgrades to semi-active, continuously controlled dampers, a subtle yet noticeable difference. The dual-motor feels taut and responsive on Austin’s winding backroads, its steering quick and consistent, its body control confident even over mid-corner heaves. There is a genuine sense of balance, with predictable rotation under throttle that never feels shy. Yet in some ways, despite its lower power and more elementary suspension, the single-motor variant was the more engaging companion at moderate speeds — lighter on its feet, easier to place, and more satisfying to drive smoothly.

A few imperfections surface on rougher pavement. The ride can border on firm, especially over sharp expansion joints, and the weight — just over 5,000 pounds — is apparent in quicker transitions. Steering is accurate but could deliver more feedback for enthusiasts, and the brake pedal’s low-speed blending between regenerative and friction braking can feel inconsistent at times. These are refinements, not flaws, and some of those rough edges could potentially be smoothed out through over-the-air software updates. Even so, the 4 still stops short of the effortless composure that defines benchmarks like Porsche’s Macan EV. Still, the 4’s character shines through. It remains composed and communicative whether cruising or being pushed, landing squarely in that rare middle ground between comfort and control that, surprisingly, few EVs achieve. Polestar says it deliberately stayed with a 400-volt system, prioritizing cost and real-world reliability over 800-volt charging bragging rights. The 4 supports up to 200 kW DC fast charging and 11 kW AC. A 10–80 percent refill takes about 30 minutes under ideal conditions.

That choice contrasts sharply with Zeekr’s latest 001, which has already transitioned to an 800-volt setup and even targets 900 volts in future updates for faster charging and higher system efficiency. Volvo, meanwhile, keeps the EX30 on a similar 400-volt SEA2 platform but is preparing to migrate larger models — like the EX90 — to 800 volts. Polestar will follow the same path with the mechanically similar 3, which moves to an 800-volt architecture shared with Volvo’s flagship SUV. In that context, the 4’s 400-volt system reads as deliberate restraint rather than a technical limitation: a focus on proven chemistry, stable thermal management, and broad charging-network compatibility while the brand prepares its next-generation hardware. The numbers are competitive rather than groundbreaking, but Polestar’s emphasis on consistency and practical usability aligns with its “limit energy-chasing” philosophy. I’d argue that given the current state of charging infrastructure and consumer expectations, this was a smart tradeoff, especially for a lean, fast-moving company looking to control costs while still delivering a premium experience. The 4 positions Polestar as a pragmatist within Geely’s EV ecosystem, betting on dependability and balance over sheer specification.

Inside, the Polestar 4 evolves the brand’s minimalist DNA into something warmer and more architectural. The cabin materials — recycled textiles, MicroTech, or Bridge of Weir leather — feel genuinely premium. Fit and finish reflect the brand’s emphasis on perceived quality and NVH solidity, a reflection of its finessed Volvo roots. Technology is neatly integrated. A 15.4-inch center display runs Google’s Android Automotive OS, paired with a 10.2-inch driver cluster and an available 5.7-inch rear screen in the Plus pack. The layout embodies Polestar’s UX principle of “direct access, one click away.” Controls are mostly intuitive, though climate and drive-mode settings still require eyes on the screen and some digging. The rear cabin benefits most from the unconventional design. Without a rear window, seatbacks are more reclined, and headroom improves beneath the vast glass roof. The result is a distinctly cocooned, lounge-like second row. Features such as Animal Mode and Depth on Demand — which subtly layer interface information — demonstrate Polestar’s human-centric approach. Noise levels are impressively low, though coarse asphalt and wind noise sometimes filter through.

Official U.S. pricing starts at $56,400 for the single-motor and $62,900 for the dual-motor, before destination. Fully equipped models can reach the mid-$70K range, placing the 4 between mainstream performance EVs like the Tesla Model Y Performance and luxury entries such as the Audi Q6 e-tron or Porsche Macan EV. The Genesis GV60 and BMW’s forthcoming iX3 successor will compete closely on price.

The federal $7,500 EV tax credit ended in September 2025, leaving all brands to compete without federal assistance. For consumers, the post-incentive landscape strips away artificial price parity, exposing true market positioning. For Polestar, it means competing on product substance alone — design, craftsmanship, and dynamic depth — against some of the most entrenched luxury and performance benchmarks in the business.

Globally, Polestar continues to expand and now operates in 28 markets. The brand recently secured a funding injection to stabilize operations as it transitions from a single-car nameplate to a full portfolio. The Polestar 3 is in South Carolina next year, the 4 launches from Busan this year, and the 5 grand tourer follows in 2026. A smaller Polestar 7 is planned for 2028. The U.S. market, however, remains Polestar’s greatest test. With incentives gone and competition intensifying, success will hinge on differentiation and brand awareness. Tesla still leads on cost and infrastructure, while legacy players offer brand familiarity and scale. Polestar’s advantage lies in restraint: Scandinavian design, refined dynamics, and transparent sustainability.

Not every product will make it here easily. The upcoming Polestar 5 and 6, both built exclusively in China on a bespoke bonded-aluminum architecture, are likely to face major hurdles in reaching the U.S. under current trade and sourcing conditions. Unless future production or supply chains shift, these halo models may remain limited to overseas markets.

From an analyst’s view, the Polestar 4 captures a brand hitting its stride just as the industry enters a more unforgiving phase. It is stylish, refined, and genuinely enjoyable to drive. The few rough edges don’t undermine the whole; they humanize it. Now that Polestar has found its voice, the challenge is less about the product and more about claiming its place in a market that no longer gives anyone a head start. If the company can pair the soul evident in this car with operational discipline and scale, the 4 won’t just mark a turning point — it will define the moment Polestar became a legitimate force in the U.S. market, even with the deck stacked against it.

Awareness and Consideration for Chinese Automakers Grows as Privacy and Secutiry Woes Fall

by Robby DeGraff, Manager of Product and Consumer Insights

With every passing year, our AutoPacific team continues to conduct research on vehicle shoppers in an ongoing effort to learn what American consumers think of Chinese automakers...because they will be here at some point. Last week, I dove into our latest batch of data to see if perception has changed at all compared to last year's Future Attribute Demand Study or “FADS”, and well, things are trending in a rather surprising direction.

Even as geopolitical tensions and tariff tirades distance China and the United States, consumers are becoming increasingly aware of Chinese automakers. Note this jumped 12% pts YoY over numbers from our 2024 FADS Study, with 22% of the 18,987 consumers we surveyed in this year's study saying they are "very familiar" with 43% saying they are "somewhat familiar".

Additionally, half of the Americans we surveyed in this year’s study told us they are also much more likely (up 10% pts. points from 2024) to consider buying or leasing a Chinese-brand vehicle when they do become available. As a result of that, certain Chinese brands are catching the eye and attention of these interested stateside vehicle shoppers, with Huawei (27%), Xiaomi Technology (23%), and BYD (19%) ranking as the top three most considered out of several automakers listed in our study.

What makes this all very shocking is that lingering consumer concerns and worries regarding privacy and national security threats if Chinese-brand vehicles are sold here in the U.S., are beginning to subside and fall.

The Top "Must-Have" Vehicle Feature for 2025 is All-Wheel Drive

By Deborah Grieb, Director of Marketing and Insights

Everyone has "must-have" and "nice to have" features when it comes to vehicle shopping. Those features that they won't buy a vehicle without, and those that they would be willing to forgo if needed. AutoPacific's newest Future Attribute Demand Study (FADS), which surveyed more than 18,000 consumers who plan to buy or lease a new vehicle in the next three years, captures these differences for the first time to provide even greater insight into feature demand to automakers, suppliers, and marketers.

The top "must-have" feature for 2025 is all-wheel drive, with 63% of all respondents who want the feature saying they won't buy a vehicle without it. A closer look at demand reveals that older vehicle intenders are more likely to consider it a must-have feature compared to younger intenders, yet must-have demand is strong across all generations. Our comprehensive data, like the scope presented here, enables deep-diving into feature demand by looking at intender demographics, psychographics, segment and powertrain intention, brand consideration, and more.

What Does the All-New Nissan Leaf Mean for EV Affordability?

By Ed Kim, President and Chief Analyst

I recently got the chance to spend a few days with the all-new 2026 Nissan Leaf, now in its third generation and representing the biggest change to this nameplate since its launch for the 2011 model year. The third-generation Leaf has morphed from the unpopular five-door hatchback bodystyle to a much more fashionable coupe-crossover shape, and not surprisingly, it’s light-years ahead of the prior two generations in terms of technology and general appeal.

The new Leaf launches at a very awkward time. The latter half of this decade was supposed to usher in the next wave of EV adoption via much more affordable EVs. AutoPacific’s own data from our annual Future Attribute Demand Study has consistently shown that among EV rejectors, price is one of the biggest rejection reasons, and that a strong choice of appealing EVs priced below $35,000 would make many EV rejectors reconsider. And certainly, automakers were poised to address the EV affordability issue with models that would have - with the now-canceled Federal tax credit for zero-emissions vehicle purchases and leases, meant multiple EV models effectively starting in the low-$20,000 range.

The Leaf is built in Japan alongside the now-discontinued (for the U.S.) Ariya because of its platform and parts commonality with Ariya, meaning a big part of the new Leaf’s supply chain is already in place in Japan. This also means it would not have qualified for the now-defunct $7,500 tax credit for EV purchases since it’s not built in the U.S., but it would have still qualified for the full credit when leased.

With the tax credit now gone AND now a 15% tariff on imported autos from Japan, the business case and value proposition for Leaf have changed dramatically right as it arrives at U.S. dealers. Make no mistake - the pricing of the new Leaf is impressive with the 303-mile S+ version starting at under $30,000, and the loaded Platinum+ I drove starts at just under $39,000. But the tax credits would have effectively reduced those prices by $7,500 when leased, making it a truly affordable EV with pricing on par with - or even below - comparable gasoline-powered small crossovers. But with the tax credits one and now a 15% tariff applying to the Japan-built Leaf, all that is out the window. Talk about unfortunate timing.

In fact, these developments affect a whole host of affordable EV models hitting the market over the next couple of years. Automakers like Ford, Chevrolet, Stellantis, and even newcomers like Slate also plan to launch affordable EV models in the next couple of years. But they won’t be as affordable as they would have been with the tax credit, and that will contribute to the EV adoption slowdown that we will continue to experience in the years to come. Previously, AutoPacific had forecast affordable EVs to power the next wave of EV adoption. But with that affordability greatly compromised, entry-level EVs won’t have the outsized impact on EV adoption growth that they were once expected to have.

Having said all that, Nissan has definitely worked to make the new Leaf as affordable as possible. The S+ model, with 303 miles of range, starts at $29,990, the same starting price as the 2018 Leaf that could only muster 151 miles of range (though the 2018 model would have qualified for the tax credit, bringing the effective price down by $7,500). And the $38,990 Platinum+, which I tested, has an artfully designed and upscale interior and luxurious feature content that feels truly premium and is one of the best Nissan interiors I’ve seen in years. And the user experience is excellent with SV and Platinum+ models using excellent Google Built-in software with embedded Google Maps and Google Play Store for additional apps, such as Spotify. Dual 14.5-inch screens in the SV and Platinum+ are impressive in their clarity and ease of use, but even the cheapest S+ model uses dual 12.3-inch screens - large even by luxury car standards. The only notable demerit inside is the fairly tight back seat compared to other small EVs like the Hyundai Kona Electric, Kia Niro EV, or the soon-to-return Chevrolet Bolt.

It’s an exceedingly pleasant thing to drive too. It’s not an enthusiast vehicle by any means, but that’s not its mission. It accelerates quickly enough, it’s very quiet inside, the suspension is tuned to be very comfortable and very nicely damped, and the steering is devoid of feel but still quite precise. Only a squishy brake pedal lacking in feel detracts from the driving experience.

Because EV drivers in the U.S. will be dealing with charging adaptors for years to come, with the slow transition to the Tesla-based North American Charging Standard (NACS), Nissan has thoughtfully provided a wonderful solution with two separate charge ports. The left charge port is a standard J1772 type for slower Level 1 or 2 AC charging (as one would do at home), meaning no adaptor is needed to use the most common home charging standard. The right-side charge port has a NACS port for DC fast charging at Tesla Superchargers, and the driver will need a CCS-to-NACS adaptor to fast charge on a non-Tesla charger. I recently spent time with a Hyundai IONIQ 9 with only a single NACS port and quickly realized that it needed not one but two adaptors if I wasn’t using a Tesla charger, one for AC charging at home and another for DC charging on the go. That was inconvenient. I prefer Nissan’s solution of only requiring one adaptor, and only for DC fast charging.

So, bravo to the new Leaf as a product. But I can’t help ponder the effect this and other upcoming entry-level EVs would have had on EV adoption rates without the double whammy of the loss of the tax credit and tariffs on imported vehicles and parts (the latter still affecting U.S.-built vehicles). To be fair, though, the Leaf Platinum+ feels worth every penny of its $39,000 price tag, even compared to gasoline-powered equivalents like the Mazda CX-30 Premium Plus or Toyota Corolla Cross Hybrid Limited. And the value proposition is undoubtedly even stronger in the cheaper S+ and SV models. But without the $7,500 break on its price when leasing, can it have the same impact on EV adoption growth that it would have prior to September 30? Probably not, and that’s unfortunate.

As Volvo Turns 70 in the U.S., Human-Centric Mindsets Remain Firmly Intertwined in the Brand's DNA

by Robby DeGraff, Manager of Product and Consumer Insights

Volvo, the humble hygge-focused automaker who marks 70 years in the U.S. market, is beginning its next saga where domestic assembly and flexible electrification become the pinnacle focus. Midway through the 2020s, the Volvo lineup has and continues to evolve, with consumer tastes dictating segment and powertrain strategies. Sedans and wagons are traded for more popular, in-demand crossovers, while ICE and various forms of hybridization are still increasingly preferable over pure EVs.

A lot has changed for Volvo. The automaker once aimed to have 100% of annual global sales be of EVs by the end of the decade. A month ago, that target was scaled back to meet ever-changing conditions due to the rate of EV adoption unsteadily accelerating and decelerating, especially here in the United States, where consumer hesitations are loud and the geopolitical environment rocky. Now, Volvo intends for 90% to 100% of its yearly sales worldwide to include both plug-in hybrids and full EVs, the latter 10% accounting for MHEVs.

In order to reach that goal, Volvo is adapting, with a strong push for greater domestic production to not only shield itself from tariffs but deliver product to North America at a much quicker, more reliable pace. Rewind to 2017, the modern 2.3 million sq. ft. plant in Ridgeville, South Carolina, came to life via assembly of the S60 sedan, which was also shipped overseas. Today, Volvo’s sole U.S. plant is home to production of the flagship three-row EX90 as well as the Polestar 3. Both EVs share one assembly line as several components, bits, and key pieces are interchangeable. At full capacity, the plant is capable of building 150,000 units per year. Volvo’s not quite there yet, but will be soon.

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Reaffirming its decade-plus of investment (a grand $1.3 billion) and commitment to boosting the state’s economy, more products are coming as early as next year. In September, Håkan Samuelsson, who exited retirement to serve a two-year term as Volvo’s CEO, confirmed at a ribbon-cutting ceremony that the next generation of the brand’s best-seller in the U.S., the XC60, will join the assembly line next year alongside the Polestar 3 and EX90. This is undoubtedly a smart move, making the popular cash-cow readily available, given the XC60 is currently imported from Torslanda (Sweden) and faces an overseas journey.

Additionally, Samuelsson revealed another product slated to enter production at the Charleston Plant before 2030: a new “next-generation hybrid model” that we expect to be an extended-range electric vehicle (EREV) flavor of the next XC90. During a roundtable discussion with top brass at Volvo, we learned this model will indeed be aimed directly at large families and move using a battery pack to drive the wheels with a gas engine as a backup, or, as Samuelsson explained, the opposite of the brand’s T8 plug-in hybrid setup in which the propulsion duties are reversed.

During my recent hosted trip to the Charleston Plant, I sat down with Luis Rezende, Volvo's new President of Americas, to chat about the flexible path toward electrification, if sedans are coming back, brand identity, and much more. *interview edited for brevity and clarity*

Robby: Brand identity seems to be a struggle for some automakers, especially some of today’s luxury makes. I feel as if Volvo's own brand identity and personality are strong and unique enough to bring in new buyers and retain those repeat customers. How can you ensure that Volvo’s image is maintained heading into the rest of this decade and into the next?

Luis: That's a good one. I think safety is our DNA. It has been since our foundation in 1927. Our founders said, “Cars are driven by people, so that's why they must be and remain safe.” This is in our everyday, so we do really celebrate when I get emails about “Volvo saved my life.” It's something that touches us, and so it gives you a purpose to come to work every day. I feel proud of the people here building these cars, because it was designed and imagined like that. Volvo will remain very firm on this. 

But not only that, our Scandinavian design makes us unique. We are the only one coming from that part of the world. Yeah you can say “Ah it's Europe,” but no, it’s like the U.S., Wisconsin is different than Florida. I think that's also a very important part of our DNA. On top of that: technology. We are becoming so strong on software-defined-vehicles that Anders was talking about including some bump in the history (the launch of the EX90 and its software issues), but the capability that the car will give is so much, because now we have a huge battery behind it, we have a computer with the capacity of processing data in a way that is it's never been imagined. I think all of these designs- when you have in mind Scandinavian design and safety as the backbone, and human-centric, this is the fundamental things that we will never change. No matter the CEO, no matter what is coming, this has been preserved. Even when I have a change of controls under Ford, Volvo AB, Ford, then the Geely group, and our listed company, we have never, ever lost this. I think that is one of the key elements that makes us different from the other brands, and that's why it’s so attractive and so respectful when you ask anyone about Volvo, their automatic response will be “safe” and the safe to why? Because we care about people. Period. 

The other thing that we're going to do is how we're going to market this. That's a different way of exploring the message. We're going to treat the U.S. in a different way than has been done before. In my previous job, I was running 58 countries. Now we’re going to treat U.S. as “50 countries.” Again, Florida is different from your region, from California, from New York. Completely different approaches. This is what we're going to target. You will always see safety, Scandinavian design, and human-centric at the center; however, the approach will be a little bit different. Maybe more “cool” in Miami, maybe more “nature” in your region (the Midwest), maybe more “trendy” in Los Angeles. That's the way that Volvo will become, and you can already start to see how we are advertising this across. To me, it is one of the fundamental things that we're going to have.

R: I feel when I’m behind the wheel of a Volvo, compared to say a Mercedes-Benz or a BMW…that human-centric design you spoke about is so evident, inside and out. I feel calm and at ease. The interior space is focused on me...I'm comfortable and safeguarded.

L: Every function that we have must have a meaning. This is Scandinavian design. We don't do things because it’s “bling-bling” or lights because it “should be lights.” No, everything has a meaning inside the car. When you do that and people perceive it, the value of the product you have is just amazing. 

The value goes even further in an EV. That’s another level because of the silence, acceleration, everything that you need…the car delivers to you. Maneuvering within the infotainment system, now with Google Gemini, the response is so fast. That's a kind of thing that is only getting better, better, and better. Imagine, SPA 2 was our first platform. Now we're going to bring this into a “master computer.” SPA 3 is coming, that is the EX60 we’re going to launch at the beginning of next year. It's coming with all the learnings that we have from SPA2, but with an even bigger battery and even bigger capabilities to generate and process data. Imagine then going further, the ability that we're going to have to update all of those cars, even the one that you bought like a SPA2 vehicle in 2025, in three years’ time…no one like Mercedes-Benz or BMW will be able to do that. It's a fundamental change, but it's a hell of an investment.

The excitement, to give you insight on it, imagine…we needed to design a car today that we're going to sell (or the platform and computer) 5 million of these. And, we need to be prepared to design software for people even though they have no clue that they will need this in the next three or four years. That's the mindset that we need to have, that's the beautiful part, and that's why he (Anders) was just like, “It's so amazing.” We’re a company that’s been here in the U.S. for 70 years, and we never lose our focus.

R: Always forward.
 
L: Always forward, always human-centric, safe, Scandinavian design.

R: When we think about moving forward, other premium automakers still offer sedans and remain committed to those segments. Do you feel as if it’s a good decision to have a lineup of only crossovers and SUVs here in the U.S.?

L: Today, we have only SUVs or crossovers, which was where the market was trending, the growth was going, and we captured that movement. I think there are a lot of questions about sedans still, and I Luis, personally, would love to have a sedan in the portfolio, because I think we would be going into a place that today, unfortunately, I cannot attend. That is something that we keep in discussion, but those are investments that need to be discussed versus having a new EV, or a new platform, or a new PHEV. All of those investments will drive us for the next 10 years. Those decisions are not easy to make, but I think for the moment, we are right. The decisions we have to make for the future are hard to predict, but as much as I can play…offering the customer the possibility of buying what they want, not what I want them to buy, and expanding the range of people, would make my life easier. 

R: With EX30 production now coming from Ghent and not China, you’ve removed a lot of the big tariff threat, and pricing is lower. Do you feel there’s room to bring in even more of an entry-level shopper into the Volvo brand?

L: I think the price of the EX30 today is the right price. The EV market has been shaking because of this federal tax credit. The credit going away, I think, is going to put us all on the same base, and all the brands will be without these incentives. Then we can discuss what the price is going to be because I don't know if $40,000 will be the “new $30,000”. That is something we will need to make an analysis of very carefully. 

What I know is that the EX30 will be very competitive, that's for sure, no matter where it goes (pricing-wise) it will be. It’s going (sales-wise) as we want. This year is going to be the first year of the car, but I can tell you that the combination of the EX30 plus EX90 is making it the best year for EV sales in the U.S. 11% of our portfolio will be EVs. That says a lot. The demand of this car is high in our dealers, much more than we were predicting a few months ago.

We have the XC40 in the same price range as the EX30. We have a bigger ICE car and a smaller, newer electric. This is saying a lot because then we start to understand that we have a consumer for both. There are consumers who are not prepared to go full electric; they want a mild hybrid and don’t want to really think about electric, fine. PHEVs for those who think “That's okay for my daily use, I'm okay using electric,” but when they go to travel, they don't want to have any kind of thinking about electric. And then those who say “No, no, no, EVs are for me.” At the point that we have EVs and ICE at the same price level, that's the goal. That's where demand will be done by the consumer and not us telling them what they need to buy. That's a fundamental change in our U.S. strategy, and I think this is the right approach for the moment.

R: If you had to give a timeline of when you're trying to get that price parity as close to gas in the U.S.?

L: I can tell you today, the EX30 and XC40, you can argue the size, but it’s already there. With the new EX60 coming, we're going to launch at the beginning of next year. Volume-wise it will come to U.S. in the middle of next year. This is going to be the goal. This car will bring this price parity, plus some other features that will reduce uncertainty for people. The car will have a bigger battery, the range will be much bigger than what we have today in our portfolio- it's going to be fantastic, you won't need to charge that much. Because of the battery, we're going to be able to charge much faster, and we’re going to be able to get more miles in less minutes. That's also going to be a key element. 

Again, the consumer will say, “Okay, that is a response for what I need, so I will go to an EV,” or they’ll say, “No, it's still not for me, I’ll go for ICE”, but the price will be more or less equivalent. That, for me, is where we're going to discuss, and no incentives, really, about the market itself. That is where demand and offer will have their capability to talk.

R: How important a role do you think plug-in hybrids are going to continue playing in U.S. sales? I’m a big fan of PHEVs, I think they’re a perfect stepping stone, but from some of our own research, a lot of times consumers don’t understand how they work or they don’t see the benefits.

L: We’ve always considered plug-in hybrid as a bridge. Our plug-in hybrids have always been getting better and better. In the beginning, they offered very few miles per charge; today, we’ve come to a much better PHEV. We're going to have a new development that’s coming that's going to be even better, but it's still phase one: an ICE car with an electric engine (a battery and motor). Phase two, as Håkan detailed: an electric car with a gas backup. This fundamentally changes everything. 

For those consumers excited to be buying a car, that’s the second most important purchase after the house. You don't want to make a mistake, you go to a lease, and you're going to be in that lease for three years. That's the point where people feel unsafe, or they feel PHEV ownership is for them: my daily routine is done using electric power, then, if I'm ready, I'll go to an EV directly. More importantly, based on that analysis, because we are one of the leaders in PHEV sales in the premium segment, we understand the adoption of this technology across the country. By doing this, we're going to ship cars more to where people tend to go more towards this direction (PHEV ownership), instead of spreading these cars across the country and having them all over the place…which then drives me to do bonuses, and we end up with a consumer buying a PHEV that they really don't see the benefits of. It's a bad business for all. So that’s a fundamental change that we are promoting also here in the U.S.

R: Do you have a ballpark of how many Volvo PHEV buyers cross that bridge to full electrification?

L: Interesting question because at the beginning, we thought that it would be a natural transition, right? From gas to PHEV, PHEV to BEV. But no. For EVs, we have the early adopters as the peak…and then we have the valley…and then convincement. The "convincement phase" can be PHEVs or not. On the EV side, people jump directly. In Brazil, we only sell PHEVs and BEVs, we have a very good base for conversation, and I can tell you 70% was directly from ICE to BEV.

R: Wow, just from ICE to BEV?

L: Yeah, jumping directly to that. That 70% were the early adopters. And then it comes the part of convincement because “convince” means “did I have an experience before?”” Did I know how to work this before?” Then PHEVs play a very, very, very important role. That, to me, is where we sit today, especially in the U.S. 

There’s still a lot of lack of knowledge on how to use EV.  I think no one has really occupied this besides the original company (Tesla). They have done a good job…but after them, no one has really occupied the place to say, “Okay, let me explain to you how this works.” So that for me is a gap that exists, and PHEVs come to help…but not that much because you can go in a PHEV and stay in a PHEV for many, many years because for your usage, depending on where you go, maybe there’s no infrastructure, maybe there isn’t charging where you're going to arrive. If you have a house and then you have a beach house or a country house that you normally go to, and you have charging stations at both…then you don't need a PHEV at all because 95% or 98% of your time you are okay. If you don't have this kind of infrastructure, then you feel unsafe, and that's the problem. That’s where a PHEV occupies a good gap that we cannot fulfill with a BEV. 

No matter how many miles we increase (per charge), it’s still an uncertainty because it's a long distance to go and back. That's why it’s so unique for each specific consumer; it makes the job very interesting because, as I said, we need to have a lineup that will serve all Americans. It's a balanced lineup. It’s for your use, we should not try to force a technology if a person is not right for that.

R: Having that flexible offering of powertrains for people.

L: Yes, and very unique. Because if we know consumers from specific regions, like those who live in rural areas or go far away every weekend…EV adoption will be very low, so PHEVs or MHEVs are probably the proper thing. Let’s say it’s a couple and the car they use for their daily routine like getting the kids to school, going into the office very close…then an EV is probably perfect. It's my garage, I have what fits for me, and that’s fine. That's the kind of mentality that I think we need, to stop categorizing people and go more into the functionalities.

SDVs, PHEVs, EVs, EREVs, and more. There are a lot of acronyms to remember and a lot on the horizon to anticipate and look forward to from Volvo as the brand writes its next chapter. Listening to their buyers, bettering the good, and fixing the not-so-good. It’s really quite moving, as Chief Engineering & Technology Officer, Anders Bell, told me, how the term “safety” has evolved in focus and definition beyond meeting structural rigidity requirements, airbags, and ADAS- growing to now include software.

While some automakers turn to outside experts for software development help, Volvo chooses to do so mostly in-house and on a market-by-market basis, rather than sharing one software stack globally due to cybersecurity requirements and marked differences in consumer tastes for various ecosystems. For example, Volvo products in China use Meizu’s Flyme Auto, whereas our stateside lineup makes use of Android Auto Automotive OS.

The early roll-out of the all-electric EX90 was unfortunately plagued by a myriad of software hiccups, glitches, and frustrations, enough to displease patient owners and rush Volvo to develop a fix for the three-row’s software stack as soon as possible. Volvo, leaning in to its storied human-centric aura, acknowledged it dropped the ball, forfeited the trust of some of its vehicle buyers, and is actively working to rebuild that confidence with thorough over-the-air updates that should improve the flagship crossover’s brain. Furthermore, Anders, who spent six years previously at Tesla, and his team collaborated on an even more intimate fix for the EX90 that ditches its outgoing problematic single centralized computer setup with a new, exceptionally more powerful and faster Nvidia Drive AGX Orin-based system dual-configuration. The new hardware is being added to all 2026 MY EX90s and is complementary for all existing 2025 EX90s.

Another fix is the EX90’s upgrade from a 400V architecture to an even more capable, advanced 800V architecture over the span of just one model year. It’s undoubtedly a feat worth recognition and bragging about, but as Anders explained, the EX90 was engineered right from the get-go to be readily updated and enhanced over time as software technology rapidly reengineers itself. “We have a continuous relationship with the car, where we’re looking both updating over-the-air cars going back five years, and at the same time we’re looking at what I want to do in five million cars five years from now”.

Being on the bleeding edge of development and marrying together sustainable energy and electrification with software-defined-vehicles is a coveted combination that Anders is absolutely sure is the most profound technological transformation in the history of the automobile. With these innovations and a software-first mentality, Volvo is in the midst of graduating into both a software company and a car company, which opens up a wide world of new possibilities.

One of those possibilities that I questioned is the concern of data security and privacy as today’s vehicles get more and more connected. Anders touted the value of collecting real-world, real-time insight from a safety perspective; harvesting data captured from what’s happening out on the open road to better Volvo’s ADAS systems. Harken back to the 1970s when engineers would visit crash sites with measuring tapes and page through police reports, this elevated approach to researching accidents is a monumental leap into modernity. Outside of the parameters of sourcing safety-related numbers, Volvo’s investments in ensuring global cybersecurity and data privacy are ongoing and sturdy. “I always say, data safety is also safety,” Anders noted.

After my engaging conversations with top brass at the Swedish automaker and touring this spotless and remarkably efficient plant, it’s clear Volvo is ambitious, proud, and conscious of the challenges and opportunities that lie ahead. The brand’s actions are pragmatic, plans flexible, and diligence to its decades of human-centric behavior and practice couldn’t be more evident.