Is there a safety recall for your car? Here’s how to find out and what you need to know
If your car faces a recall, almost all repairs are free.
Volvo Cars told Reuters on Monday it plans to recall more than 40,000 of its flagship EX30 electric SUVs due to the risk of battery packs overheating. This could tarnish automakers’ hard-earned safety reputations and cost them millions of dollars.
The previously unreported recall involves replacing modules in high-voltage battery packs in compact SUVs, a key model for Volvo as it seeks to compete with cheaper Chinese brands. Battery safety is a very sensitive issue for EV manufacturers and consumers.
In response to questions from Reuters, the Swedish automaker, which is majority-owned by China’s Geely Automobile GEELY.UL, said a total of 40,323 EX30 single-motor extended range and twin-motor performance vehicles equipped with these high-voltage cells were affected.
Volvo VOLCARb.ST said: “We are currently contacting all affected vehicle owners and advising them on next steps.”
Volvo Cars’ stock price fell 4% following the Reuters report on the recall.
In the rush to develop new electric vehicles, some automakers are facing battery defects. In 2020, a fire hazard forced General Motors Co GM.N to recall 140,000 Chevrolet Bolts equipped with batteries supplied by South Korea’s LG Electronics, costing $2 billion to repair.
Volvo’s battery problems come as the automaker seeks $1.9 billion in cost cuts and greater integration with parent company Geely Automobile. The battery was manufactured by Shandong Geely Sanheda Power Battery Co., Ltd., a joint venture supported by Geely, and Volvo said its supplier would resolve the issue and supply new battery cells.
“They need to get it right.”
Volvo said it would replace affected units free of charge and urged owners to continue limiting charging to 70% for the time being to eliminate the risk of fire.
“The EX30 in particular is so important to Volvo that we need to get it right,” said Sam Fiorani, vice president of global vehicle forecasting at research firm Autoforecast Solutions.
Since December, Volvo has told EX30 owners in more than a dozen countries, including the U.S., Australia and Brazil, to park away from buildings and cap charging at 70%, according to regulatory filings and the company.
Industry veteran Andy Palmer, who oversaw the launch of Nissan Motor Co 7201.T’s electric vehicle Leaf in 2010, said Volvo has less room for error than its competitors because its reputation for safety is central to its identity.
“Volvo can’t afford to think about safety issues because it goes to the very heart of the Volvo brand,” he said.
Resolving battery issues can be expensive
A new replacement battery module could cost $195 million, excluding logistics and repair costs, according to a Reuters analysis based on what Chinese battery makers could charge. Volvo said the calculations were “speculative in nature” and that the automaker was negotiating with suppliers.
Ahead of news of the recall, Reuters spoke to two EX30 owners who wanted to return their cars to highlight the potential impact.
British insurance agent Matthew Owen said he chose the EX30 because of its range and Volvo’s reputation for safety, adding that car manufacturers should take responsibility for “producing dangerous cars”.
New Zealand EX30 owner Tony Lu said he was facing higher costs due to reduced range due to charging caps.
“I would be really happy if they bought the car back,” Lu said.
Marie Manns reports from newsrooms in Stockholm, Shanghai and Beijing. Editing: Nick Carey, Emelia Sithole-Matarise, Tomasz Janowski
