Tariffs Decimated This Brand's Lineup in a Matter of Days | Carscoops

      Volvo is eliminating the V90 wagon from its US offerings, along with the S90 sedan.

      The company manufactures vehicles in Europe and China, making it vulnerable to tariffs.

      Recently, Volvo announced it cannot sell the ES90 profitably in the US.

      Changes have also been made to the plans for the EX30 in the US over the past few months.

      Volvo’s presence in the United States is becoming significantly more limited and less appealing. Following recent reports that new tariffs are prompting the automaker to start producing the XC60 in the US, Volvo has now confirmed it will phase out sedans and station wagons from its lineup in America. Moving forward, only half of Volvo’s 13 global models will be available in the US, with all but one being SUVs.

      Sales of the Volvo S90 in the US have been halted as it is manufactured in China and is now subject to a 100 percent import tariff. Additionally, Volvo claims it cannot sell the forthcoming all-electric ES90 sedan profitably in the American market. Likewise, the V90 station wagon is set to be discontinued.

      In the meantime, the company has updated its plans for the EX30 in the US, deciding to only offer the top-tier dual-motor version. Consequently, the more affordable single-motor variant, which could have rivaled the Tesla Model Y, will not be available.

      Tariffs are reshaping Volvo’s strategy. As noted by Reuters, Volvo is uniquely affected by these tariffs. While it manufactures some models in a South Carolina plant, including the EX90, the majority of its vehicles are produced in either China or Europe. Presently, cars from Europe face a tariff of 27.5 percent upon entering the US, while those from China incur a 100 percent tariff.

      As a result, Volvo has announced it will record an impairment charge of 11.4 billion crowns, roughly $1.2 billion based on current exchange rates, for the second quarter due to these tariffs.

      The production of the XC60 in South Carolina could be pivotal for the brand. This year, the XC60 has comprised over one-third of all Volvo sales in the US, which is a 22.9 percent increase from last year. This is particularly notable considering that, while the XC60 is well-rounded, it is somewhat outdated compared to its European rivals.

      There is speculation that Volvo may expand its manufacturing operations in the United States. Recent reports suggest that the company might start producing the larger XC90 at the South Carolina facility, although Volvo has yet to confirm these plans.