Volvo XC90 getting the axe?Enlarge Photo
The news comes from Sweden’s Auto Motor & Sport, which claims the second-generation XC90 has been canceled because of a lack of environmentally-friendly powertrain options as well as increased costs required to develop expensive lightweight components.
The new XC90 was expected to be launch within the next two years but it seems the sudden decision has come as a complete surprise to even those close to the project. According to the source, OEM component suppliers are yet to even be informed of the model’s demise.
Volvo is now expected to facelift the current model in 2009 and keep it on the market until 2012.