On the Dash:
- Volvo will begin U.S. production of its XC60 SUV in 2025 to avoid Trump’s 15% import tariff and support tariff-free exports to Europe.
- The Ridgeville plant, running at just 20% capacity, is expected to reach 4,000 jobs and higher output by 2030.
- While hybrids remain in demand, Volvo is investing in EV growth with upgrades to the EX90 and plans for a next-generation U.S.-focused hybrid.
Volvo Cars plans to expand production at its $1.3 billion factory in Ridgeville, South Carolina, shifting assembly of its popular XC60 SUV from Sweden to the U.S. in response to new tariffs under President Donald Trump’s trade policy.
The Swedish automaker said the move will help offset a 15% levy on imported vehicles that replaced a previous 2.5% duty. Producing the XC60 domestically enables Volvo to avoid the higher tariff while also allowing for tariff-free exports back to Europe under preliminary U.S.-EU trade terms.
Volvo’s Ridgeville facility, designed to produce 150,000 vehicles annually, currently operates at approximately 20% capacity, employing roughly 2,000 employees on a single shift. The company originally pledged to create 4,000 jobs at the plant, a target it now expects to reach by 2030 as additional production lines are added.
The XC60, offered as both a gas-electric hybrid and a plug-in hybrid, has recorded more than 27,000 U.S. sales this year, representing a nearly 20% increase over the same period last year. Volvo executives emphasized that American buyers continue to show strong interest in hybrids, as many are reluctant to entirely abandon gas-powered vehicles.
At the same time, the company has emphasized that long-term growth will stem from EVs, warning that manufacturers who fail to make the transition may struggle to remain competitive.
In Ridgeville, Volvo already builds the $81,000 EX90 electric SUV, though only 2,500 units have sold in the U.S. this year, placing it sixth among the brand’s seven models. A refreshed EX90 debuting next year will include faster charging, adding more than 150 miles of range in 10 minutes, along with new safety and driver-assist features. Volvo also plans to launch a next-generation hybrid, designed explicitly for U.S. buyers, before 2030.
By that year, the company aims for at least 90% of its U.S. fleet to be “electrified,” a category that includes hybrids as well as fully electric vehicles. Volvo, which holds just 1% of the U.S. auto market, generates 20% of its global revenue in America.
Executives also noted that producing vehicles in South Carolina strengthens Volvo’s industrial presence in the U.S. while easing the impact of Trump’s tariffs on imported models and parts.
