In a significant shift in its product strategy, Volvo has announced that it will no longer produce wagons, citing high production costs and changing consumer preferences. The decision was confirmed by the company's CEO, who stated that Volvo will focus exclusively on SUVs and sedans moving forward.

The move comes as part of Volvo's broader effort to streamline its operations and adapt to the evolving automotive market. Wagons, once a staple of the brand's lineup, have seen declining demand in recent years, particularly in key markets such as North America and China. Meanwhile, SUVs and sedans have become increasingly popular, driving the company to reallocate resources toward these segments.

"While wagons have been an important part of Volvo's heritage, the reality is that producing them has become too expensive, and the demand simply isn't there anymore," the CEO explained. "Our focus now is on delivering the best possible SUVs and sedans that meet the needs of today's customers."

Volvo's decision marks the end of an era for the brand, which has long been synonymous with practical, family-friendly wagons. Models like the V60 and V90 have earned a loyal following over the years, but the company believes that concentrating on SUVs and sedans will better position it for future growth.

The shift also aligns with Volvo's commitment to electrification. The brand has already introduced several electric and hybrid SUVs and sedans, with plans to expand its EV lineup in the coming years. By focusing on these segments, Volvo aims to accelerate its transition to a fully electric future.

While the discontinuation of wagons may disappoint some longtime fans, the company remains confident that its new direction will resonate with a broader audience. "We are proud of our history, but we must also look ahead," the CEO added. "This decision is about ensuring Volvo remains competitive and relevant in a rapidly changing industry."

Volvo's updated lineup of SUVs and sedans is expected to debut in the near future, with the company promising cutting-edge design, advanced technology, and a continued emphasis on safety. As the automotive landscape continues to evolve, Volvo is betting big on a future dominated by SUVs, sedans, and electrification.