Tariffs Might Finally Encourage Volvo To Manufacture Its Best-Selling Models In The U.S. | Carscoops

Tariffs Might Finally Encourage Volvo To Manufacture Its Best-Selling Models In The U.S. | Carscoops

      Trump's renewed tariff threats might accelerate Volvo's plans to localize its manufacturing in the U.S.

      Volvo is expected to start producing the XC60 and XC90 at its South Carolina facility in the near future. Currently, the plant manufactures the slowly selling EX90 and Polestar 3, but at a limited capacity. If plans proceed as anticipated, production of both SUVs could commence before 2028.

      The Ridgeville, South Carolina plant produces the EX90, but as noted recently, there is minimal consumer interest, with only 1,972 units sold in the first half of the year. In contrast, June saw the sale of 3,004 XC90s and 2,421 XC60s.

      These figures are quite alarming, especially given that the U.S. is a key market during a global trade conflict. Nevertheless, Volvo reportedly has a strategy to enhance profitability and utilization at the facility, which also manufactures the Polestar 3.

      According to sources cited by AutoNews, production of the XC60 at Volvo's U.S. plant is set to begin in January 2027, with the XC90 following in October 2028. If this turns out to be accurate, it would be a strategic move, as these crossovers are the brand's top-selling models in the U.S.

      Last year, Volvo sold 39,492 XC90s and 38,892 XC60s in the U.S., together accounting for nearly 63% of all Volvo sales in the country.

      This transition would significantly benefit the plant, which is currently operating at only 13% capacity. If all goes as planned, it could produce up to 60,000 XC60s and 50,000 XC90s each year.

      The report also indicates that the ES90 may eventually be produced in South Carolina. This model is presently manufactured in China, and Volvo recently cited tariffs as a barrier to profitable sales in the U.S.

      Volvo has neither confirmed nor denied this report, but a spokesperson stated to Car & Driver, "Volvo Cars is dedicated to its long-standing strategy of manufacturing where we sell – a principle that is increasingly significant. As part of this strategy, Volvo Cars has indicated that it is contemplating adding production of another model at our U.S. plant, which has a capacity of 150,000 vehicles annually. We look forward to providing more details soon."

Tariffs Might Finally Encourage Volvo To Manufacture Its Best-Selling Models In The U.S. | Carscoops Tariffs Might Finally Encourage Volvo To Manufacture Its Best-Selling Models In The U.S. | Carscoops

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Tariffs Might Finally Encourage Volvo To Manufacture Its Best-Selling Models In The U.S. | Carscoops

Trump's revived tariff threats may hasten Volvo's efforts to localize its manufacturing in the United States.