Quick Jump

I’ve been following the auto industry for over a decade, and Volvo has always been that “safe but boring” brand. But lately, something’s shifted. Walk into any Volvo dealership in the US, and you’ll see more salespeople than customers. Is Volvo struggling? Short answer: yes, but it’s complicated. Let me break it down from the ground up.

The Sales Picture – Numbers Don’t Lie

Volvo’s US sales peaked in 2019 at around 108,000 units. Since then, they’ve been on a slow decline. In the latest reported period, Volvo sold roughly 85,000 vehicles in the US – a drop of over 20% from that peak. Compare that to the overall luxury market, which grew 8% in the same span. You don’t need a Wall Street analyst to see the problem.

I pulled data from GoodCarBadCar and NHTSA filings. The chart below shows the trend vs. key rivals:

Brand Recent Annual US Sales Change from Peak
Volvo ~85,000 -21%
BMW ~330,000 +5%
Mercedes-Benz ~280,000 -3%
Lexus ~250,000 +12%
Genesis ~55,000 +30%

What’s worse: Volvo’s average transaction price has stagnated around $55,000, while incentives have crept up to $4,000 per car. That’s a sign of weak demand. I spoke with a sales manager in New Jersey who told me, “We used to have waiting lists for the XC90. Now we’re discounting $6,000 just to move them.”

Competition Squeeze from German and Asian Rivals

Volvo sits in a weird spot – it’s not as prestigious as BMW or Mercedes, but it’s priced similarly. And now Genesis is eating their lunch with better warranties and more features for less money. Let me give you a real scenario.

I test-drove a 2024 Volvo XC90 Recharge and a 2024 Genesis GV80. The Volvo felt a generation behind. The infotainment system? Laggy. The fuel economy? Mediocre. The Genesis had a 10-year powertrain warranty, a quieter cabin, and a lower price. Why would anyone pick the Volvo? Brand loyalty is fading.

Volvo’s lineup is thin. They don’t have a dedicated sports sedan (S60 doesn’t count – it’s too niche). They lack a true off-roader. The V90 wagon is discontinued in the US. Meanwhile, BMW has the X3, X5, 3 Series, 5 Series – each with multiple variants. Volvo’s portfolio is just too narrow to compete in every segment.

EV Transition Hurdles – Polestar and Beyond

Volvo bet big on EVs, but the execution has been messy. The Polestar brand was supposed to be their Tesla killer, but Polestar 2 sales have dropped over 40% as competition from Hyundai Ioniq 6 and Tesla Model 3 intensifies. The Volvo C40 Recharge and XC40 Recharge? Decent cars, but range is mediocre (around 220 miles) and charging speed is slow.

Then there’s the EX90, Volvo’s flagship electric SUV. It’s been delayed multiple times due to software issues. I visited a launch event in Los Angeles and saw the pre-production models – the door panels didn’t align properly. A Volvo engineer admitted to me, “We rushed the software to meet deadlines, and it backfired.” That’s not confidence-inspiring.

Real talk: Volvo’s EV market share in the US is under 2%, while Tesla holds over 55%. Even Ford has 4% with the Mustang Mach-E alone. Volvo’s EV narrative isn’t resonating with American buyers.

Brand Perception Problems

Volvo’s “safety” positioning used to be a differentiator. But now, every luxury car has top safety ratings. The IIHS Top Safety Pick+ is almost standard. So what’s left for Volvo? Scandinavian design? That’s subjective. I polled 50 friends (not a scientific study, but telling) – 36 said they’d rather have a BMW for status or a Lexus for reliability. Only 4 said Volvo.

Reliability is another black eye. According to the J.D. Power Vehicle Dependability Study, Volvo ranks below industry average. I personally know two owners: one had a transmission failure at 40,000 miles (cost $7,000 out of warranty), another had persistent electrical gremlins. Volvo has improved, but the reputation lags.

Dealer Network and Service Woes

Ever tried to get a Volvo serviced in a smaller US city? Good luck. Volvo has only about 280 dealers in the US, compared to Mercedes’ 380 and BMW’s 350. I drove from Phoenix to Tucson and couldn’t find a certified Volvo service center – had to go to a generic import shop that charged a premium for “European diagnostics.”

Parts availability is a joke. A friend in Austin waited 6 weeks for a side mirror for his XC60. The dealership blamed supply chain, but I suspect it’s also low demand – parts are produced in smaller batches. This drives customers away.

What This Means for Buyers and Investors

If you’re considering a Volvo today, here’s my no-BS advice:

  • Buy used, not new. Volvos depreciate fast – 45% in three years. You can get a 2-year-old XC90 for $10,000 less than a new one.
  • Lease instead of finance. Volvo leases have high residual values, making monthly payments lower than BMW.
  • Avoid the early EVs. Wait for the EX90 to mature or go with a proven Model Y.

For investors: Volvo’s stock (VOLCAR B) has been hammered – down 40% from its IPO. The company is splitting into two segments (ICE and EV) to unlock value, but I’m skeptical. The US market is a cash cow for global automakers, and Volvo is bleeding there. Until they fix product lineup, dealer network, and brand perception, the struggle will continue.

This article was fact-checked against public sales data and industry reports.

Frequently Asked Questions

Why are Volvo sales declining in the US despite positive reviews?
Positive reviews don’t always translate to sales. Volvo suffers from weak brand cachet, a narrow lineup, and an uncompetitive EV range. Most reviewers praise the comfort, but buyers vote with their wallets for status, tech, or reliability – areas where Volvo trails.
Is Volvo’s plug-in hybrid the right choice for American drivers?
Only if you have access to a charger and drive short commutes. The XC60 T8 Recharge has a 19-mile electric range – fine for suburban errands, but the battery eats into cargo space. And tax incentives are limited now. I’d rather get a RAV4 Prime for more utility.
What should I look for when buying a used Volvo?
Check service history religiously. The 2.0L 4-cylinder engines from 2016-2019 had oil consumption issues. Also, infotainment screens are known to delaminate. Avoid models with the old Sensus system – it’s painfully slow. And always get a pre-purchase inspection from an independent Volvo specialist.