Volvo Cars is recalling over 40,000 of its flagship electric EX30 SUVs due to a risk of battery packs overheating, a move that could dent the Swedish automaker's safety reputation and cost millions. The recall, confirmed to Reuters on Monday, involves replacing modules in the high-voltage battery packs of the compact SUV.
A total of 40,323 EX30 Single-Motor Extended Range and Twin-Motor Performance cars are affected. Volvo, majority-owned by China's Geely, said the recall addresses potential overheating risks and that it is contacting owners of all affected cars to advise on next steps.
The batteries were made by a Geely-backed joint venture, Shandong Geely Sunwoda Power Battery Co. Volvo said the supplier has fixed the problem and will supply new battery cells. The automaker urged owners to continue limiting charging to 70% to eliminate fire risk.
Volvo shares fell 4% following the Reuters report. The recall comes as Volvo pursues a $1.9 billion savings drive and deeper integration with Geely. New replacement battery modules could cost $195 million, excluding logistics and repair costs, according to a Reuters analysis.
Industry experts warn that safety issues are particularly damaging for Volvo. “Volvo can't afford a safety issue because that strikes at the heart of their brand,” said Andy Palmer, an industry veteran. The EX30 is crucial to Volvo's strategy for competing with cheaper Chinese brands.
