Volvo is overhauling its compact SUV lineup for 2028, introducing a refreshed XC40 with updated styling, new technology, and improved safety features. However, the automaker is discontinuing the all-electric EX40 in the American market, leaving only the gasoline-powered XC40 available to US buyers.
The XC40 has been a cornerstone of Volvo's North American portfolio since its 2017 debut. The compact SUV ranks as the company's third-best-selling model in the United States and second-highest internationally. When Volvo introduced the all-electric variant in 2019, it was initially called the XC40 Recharge before being rebranded as the EX40 in 2024 to align with the company's updated electric vehicle naming convention, which also includes the EX30, EX60, and EX90.
The visual transformation of the 2028 XC40 represents a more substantial update than the 2022 refresh. The front end has been significantly redesigned with a simplified bumper that eliminates the previous model's numerous cutouts and scalloped sections. Volvo's signature Thor's hammer headlight design remains, but additional lighting elements are now concealed, creating a cleaner, more minimalist appearance. The hood and fenders have been resculpted to complement the revised front, and the rear styling has been updated to match. While the overall silhouette remains recognizable, the daylight appearance is noticeably more contemporary. The electric EX40 receives identical exterior revisions, making the two models nearly indistinguishable aside from badging and grille treatment. The EX40 features a flat, body-colored grille panel, while the XC40's grille incorporates diagonal slashes designed to emphasize the Volvo logo.
Inside, both vehicles feature a larger 11.2-inch touchscreen display, an increase from the previous 9-inch unit. The new screen sits slightly elevated on the dashboard compared to its recessed predecessor. The infotainment system runs the latest version of Android Automotive, which now integrates Google's Gemini AI assistant. Gemini can adjust vehicle settings, manage entertainment functions, and provide contextual information such as restaurant recommendations with dietary options or scenic route suggestions. While Gemini integration is not new to Volvo—the company added it to most of its models earlier in 2024—the larger display and updated ambient lighting enhance the overall cabin experience. The XC40's interior quality remains competitive within its segment.
The most significant improvements lie in the vehicle's sensing and safety capabilities. Both the 2028 XC40 and EX40 are equipped with an enhanced sensor package featuring high-resolution cameras providing 360-degree coverage, ultrasonic sensors integrated into the bumpers, and updated radar technology. This upgraded hardware enables a detailed 3D view of the vehicle's surroundings, a feature previously available only on Volvo's larger, more expensive models. The Pilot Assist active safety system now includes an automated lane-change feature alongside its existing advanced lane-keeping and adaptive cruise control functions. An upgraded central safety controller with increased processing power manages these systems and supports over-the-air updates, potentially enabling additional driver assistance features in the future. However, Volvo CEO Håkan Samuelsson has emphasized that the company is not pursuing hands-off driving systems comparable to those offered by competitors like BMW or Tesla, preferring to maintain driver engagement.
The most consequential change for American consumers is the discontinuation of the EX40 in the US market. Beginning with the 2028 model year, Volvo will offer only the gasoline-powered XC40 to domestic buyers. The US version will be available in B5 trim, powered by a 2.0-liter turbocharged four-cylinder engine producing 247 horsepower and 266 pound-feet of torque. An eight-speed automatic transmission and a small electric motor combine to deliver 27 miles per gallon. The all-electric EX40 will continue to be sold internationally. Volvo has attributed the discontinuation to a combination of modest sales performance and the model's foreign manufacturing location. This decision follows the earlier departure of the smaller EX30 from American dealerships, though Volvo has avoided the more severe market withdrawal experienced by its performance-focused Polestar brand.
The redesigned 2028 XC40 will arrive at US dealerships in early 2025, with pricing details to be announced closer to launch. Existing EX40 inventory will be depleted as the model transitions out of the American market.
