Trump's Tariffs Prompt Volvo to Manufacture a New Model in the US | Carscoops

      Tariffs from the Trump era are prompting Volvo to focus on regional production, increasing the number of cars made in the U.S.

      15 hours ago

      By Brad Anderson

      Volvo intends to boost output at its South Carolina plant, concentrating on hybrid vehicles.

      Currently, the all-electric EX90 is the only model produced in the U.S. by Volvo, but upcoming changes are on the horizon.

      The S90 sedan is anticipated to be phased out in the U.S. due to tariff complications.

      If you're an automaker importing vehicles to the U.S. right now, the situation isn't easy. For instance, Volvo has been selling cars in America for many years, yet nearly 90% of the vehicles it sells in the U.S. are manufactured in Europe. With regionalization driven by Trump-era tariffs becoming the norm, the company recognizes the need to enhance domestic production.

      And that’s precisely what they are doing. Volvo is committing to its South Carolina plant with plans to manufacture more vehicles in the U.S. Under the guidance of Hakan Samuelsson, who succeeded long-time CEO Jim Rowan on April 1, the company is considering its next production model for the U.S.

      At this time, the all-electric EX90 is the sole model produced locally by Volvo. Samuelsson has suggested that the next model will likely feature both mild-hybrid and plug-in hybrid variants, indicating it may be either the XC60 or XC90.

      “No chance for sedans or wagons,” he shared with Auto News. “If you examine the bestsellers in the U.S., they are typically some type of SUV. We can't import cars from Europe and assume they'll sell.”

      Although Samuelsson did not reveal when Volvo will decide on which new model to manufacture in the U.S., he mentioned plans for a forthcoming trip to the U.S. to discuss with dealers and determine which model would be the most viable.

      “It should happen rather quickly if we're going to maximize utilization, as we have personnel who need tasks,” he added. “With the tariffs, the situation has become more detrimental since the options for exporting are less straightforward.”

      In addition to advancing local production, the Trump administration’s tariffs are also shaping Volvo’s sales tactics. Next year, the company plans to discontinue the S90 sedan in the U.S. because it is imported from China. Instead, they will prioritize their more popular models like the XC40, XC60, and XC90.

      While Volvo develops its next U.S.-built vehicle, Samuelsson also stressed that significant efforts are being made to promote the all-electric EX90, aiming to boost sales of the model already produced in South Carolina.