Volvo Cars is making substantial changes to its U.S. operations as tariffs and evolving consumer preferences reshape the automotive industry.
In response to steep import duties, the Swedish manufacturer will start producing its popular XC60 SUV at its Ridgeville, South Carolina plant from late 2026, aiming to avoid extra costs and support American manufacturing jobs. The site, which already assembles the electric EX90, will offer a variety of powertrains to cater to differing American tastes.
“The XC60 is already beloved around the world and in the U.S. and we’re proud we’ll soon be able to offer American families the XC60 they love, assembled here by American autoworkers. The XC60 is the right car for this market. It offers the best of Volvo in a versatile size with the powertrain options to suit our US customers,” said Luis Rezende, president of Volvo Cars Americas.
Simultaneously, Volvo is phasing out less popular saloon and estate models in the States, focusing instead on SUVs and hybrids, which have become increasingly popular as the U.S. transition to fully electric vehicles gathers pace more slowly than anticipated.
Financially, the company has faced headwinds, including an impairment charge linked to its electric vehicle strategy, but second-quarter results exceeded expectations and buoyed its share price despite ongoing market challenges.
Volvo’s leadership, marking 70 years in the American market, stresses continued commitment to the U.S., regardless of the turbulent trade environment.
“What we are doing is first of all, we want to fill our factory we have in South Carolina. It should be the strategic asset it was intended to be. So, we have to utilise it more…. Second, of course, now with the tariffs, it is very natural to bring in a [car model with] big-selling volume. We are bringing in the XC60 SUV,” explained Volvo Cars CEO Håkan Samuelsson.
By ramping up local production and narrowing its U.S. model range to focus on best-sellers, Volvo hopes to maintain its footing and adapt to the unpredictable realities of the American car market.