Volvo is technically capable of making a car that drives 250 kph. That was the top speed of the Volvo 850 T-5R way back in 1995, so its a bold claim to suggest that lowering their top speeds is because they're incapable.
But "250 without issues" is easy to achieve under perfect conditions, but it is far from safe. The driver only has to sneeze at that speed, or hit a puddle of oil or some debris dropped by another car, and it is game over. They're right that safety tech won't save you at those speeds.
Volvo doesn't want anyone dying in their cars, regardless of whether its the driver's fault. Nobody needs to drive that fast and "people who will drive at >180 on the autobahn" is not a common enough use case worldwide to be worth optimizing for.