Volvo launched the EX90 as a flagship EV combining Scandinavian design, safety and advanced software, but the vehicle has suffered numerous software bugs that undermined its rollout. Many legacy automakers face similar digital challenges as they shift to software-defined vehicles, forcing rapid patching and development changes. Volvo rehired former CEO Håkan Samuelsson to address rising development costs and execution problems. Samuelsson announced $1.87 billion in cost reductions and roughly 3,000 layoffs while prioritizing intensive efforts to reduce software defects. The company is operating in damage control to restore reliability and protect its reputation in the EV market.
A focus on Scandinavian design philosophy, a dash of safety and a whole lot of next-gen tech would solidify its footing. There's just one thing that the Swedish brand probably wasn't anticipating: loads of software bugs. The company's flagship EX90 is plagued with them. It's not alone; many legacy car manufacturers are running into digital problems that are complicating the transition to a modern automotive age.
Earlier this year, Volvo brought back former CEO Håkan Samuelsson to relieve Jim Rowan, who came from the vacuum maker Dyson in 2022 without car industry experience. His mission, according to the Financial Times: salvage a company "buried" under titanic development costs for its EVs, starting with the EX90, and right the ship. Samuelsson came in swinging. Within weeks of his rehiring (which is contracted for two years), he announced a sweeping $1.87 billion in cost reductions, including layoffs totaling around 3,000 people.
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