The Charleston site currently handles production of the EX90 and Polestar 3
May 8, 2025 at 09:13
- Volvo’s Charleston plant cut 125 jobs due to fluctuating trade policies and tariffs.
- Tariffs have forced Volvo to rethink its US strategy, including discontinuing the S90 sedan.
- The company intends to create 4,000 new jobs in South Carolina, but timing is unclear.
President Donald Trump has long proclaimed that their new tariffs will encourage car manufacturers to build more of their vehicles in the United States. While some brands have indeed strengthened their commitments in the local market, Volvo has gone ahead and unexpectedly announced it will actually cut 5% of the workforce at its factory in Charleston, South Carolina.
The Swedish brand confirmed that these cuts do not form part of the redundancies it announced during the release of its first-quarter earnings last week. In total, the Charleston cuts will impact roughly 125 of the 2,500 employees who work there. It did not say who will lose their jobs or if the firings will impact production.
Read: Trump’s Tariffs Drive Volvo To Build A New Model In The US
Volvo’s South Carolina plant has the capacity to build 150,000 vehicles annually. However, it currently only builds the electric EX90 and the Polestar 3 there. It blamed the new job cuts on ever-changing trade policies, tariffs, and changing market conditions.
Despite slashing over 100 jobs, Volvo told Reuters that the US remains an important part of its long-term strategy and it’s still committed to boosting local output in the future. It also said it intends to eventually create 4,000 new jobs in South Carolina, but did not specify when these new jobs could be created.
It seems likely that Volvo is looking to slash any unnecessary expenses while global economies begin to adjust to America’s move away from globalization. As recently as last week, Volvo chief executive Hakan Samuelsson said the brand is already thinking about building an additional model in the US. While he did not specify which model this will be, the XC60 and XC90 are the most likely options.
Trump’s tariffs have also forced Volvo to rethink its local sales strategy. It will reportedly stop selling the S90 sedan in America from next year because it’s imported from China. This will allow Volvo to focus on models including the XC40, XC60, and XC90.
