Volvo Cars said it will cut approximately 125 jobs, or 5% of the workforce, at its Charleston, South Carolina factory as the company adjusts to shifting market conditions and evolving trade policies. The company made the announcement on Wednesday as part of a broader effort to realign operations and sharpen its U.S. strategy.
The production changes affect Volvo’s only American plant, which currently employs about 2,500 workers and builds the EX90 electric SUV and the Polestar’s model 3. Despite having a capacity to produce 150,000 vehicles annually, the facility has seen relatively low output, with only 1,316 EX90s sold in the U.S. so far in 2024.
Volvo, which is majority-owned by China’s Geely Holding, emphasized its long-term commitment to U.S. manufacturing. The automaker said it remains on track to create 4,000 jobs in South Carolina and plans to expand output at the Charleston site in the future.
The company clarified that it is implementing recent job cuts separate from the broader global cost-saving measures announced last week in its Q1 earnings report, which includes a plan to reduce expenses by 18 billion Swedish crowns (approximately $1.88 billion). However, the automaker has not specified when it will share more details about the job cuts or which specific roles will be affected.
With nearly 43,000 employees worldwide—29,000 in Europe, 10,000 in Asia, and 3,000 in the Americas—Volvo says the U.S. remains a core market. The company reiterated that its focus remains on strengthening its American product lineup and manufacturing footprint.
