Volvo’s U.S. manufacturing plans could accelerate due to Trump’s latest tariff threats
Volvo’s Ridgeville, South Carolina plant currently produces the EX90, but as noted recently, demand for the electric SUV remains weak. In the first half of the year, only 1,972 units were sold in the U.S., compared to 3,004 XC90s and 2,421 XC60s sold in June alone.
These figures are concerning, especially with the U.S. being a key market and amid ongoing trade tensions. However, Volvo reportedly has a strategy to improve profitability and boost production at the plant, which also builds the Polestar 3.
According to Automotive News, citing sources familiar with the plan, Volvo intends to start building the XC60 in South Carolina by January 2027, followed by the XC90 in October 2028. This would be a smart move, as both crossovers are Volvo’s best-selling models in the U.S.
In 2023, Volvo sold 39,492 XC90s and 38,892 XC60s in America, accounting for nearly 63% of its total U.S. sales. Shifting production of these models stateside could help counteract tariff pressures and strengthen the brand’s position in the market.
Currently, the Ridgeville plant is reportedly running at just 13% capacity. Under the new plan, production could ramp up to 60,000 XC60s and 50,000 XC90s annually. There’s also speculation that the ES90, which is currently built in China, could eventually be assembled in South Carolina, as tariffs have made it unprofitable to sell in the U.S.
While Volvo has not officially confirmed the report, a spokesperson told Car and Driver: “Volvo Cars is committed to its long-held strategy of building where we sell — a principle that is more important now than ever. As part of this strategy, Volvo Cars has previously communicated that it’s considering adding production of another model at our U.S. plant, which has a capacity of 150,000 vehicles per year. We look forward to sharing more soon.”
