Trump’s renewed tariff threats could accelerate Volvo’s plans to localize US manufacturing
- Volvo may begin building XC60 and XC90 at their South Carolina factory soon.
- The plant currently builds the slow-selling EX90 and Polestar 3 at low capacity.
- Production of both SUVs could start before 2028 if the plan moves forward.
Volvo’s Ridgeville, South Carolina plant builds the EX90 but, as we noted yesterday, buyers are few and far between. Through the first six months of the year, Americans only bought 1,972 of them. That compares to the 3,004 XC90s and 2,421 XC60s that were sold in June alone.
Those are some truly terrifying numbers, especially when the United States is one of your most important markets and there’s a global trade war. However, Volvo reportedly has a plan to boost profitability and utilization at the plant, which also builds the Polestar 3.
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Citing people familiar with the matter, AutoNews is reporting Volvo’s U.S. plant will begin production of the XC60 in January of 2027. It’s expected to be followed by the XC90 in October 2028. If the report pans out, this would be a brilliant move as the two crossovers are the brand’s best-selling vehicles in the United States.
Last year, Volvo sold 39,492 XC90s in America and another 38,892 XC60s. Those vehicles alone represented nearly 63% of all Volvo sales in the country.
The move would be a serious boost for the plant, which is reportedly operating at just 13% capacity. If everything goes according to plan, the facility could build up to 60,000 XC60s and 50,000 XC90s annually.
The report also suggests the ES90 could eventually be built in South Carolina. The model is currently made in China and Volvo recently cited tariffs as the reason they couldn’t profitably sell the car in the United States.
Volvo didn’t confirm or deny the report, but a spokesperson told Car & 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.”
