Volvo’s EX30, one of the best-selling electric vehicles in Europe, has encountered significant challenges since its entry into the U.S. market. Despite its popularity in Europe, the EX30’s launch in the U.S. was delayed due to tariffs on Chinese-made vehicles, which hindered early profitability. However, Volvo’s shift to European production has begun to ease some of these tariff issues. On Friday, the first European-built EX30 was assembled in Belgium, helping mitigate some of the challenges imposed by import tariffs.
Håkan Samuelsson, who returned as Volvo’s CEO in April 2025, is tasked with stabilizing the company amidst a range of difficulties. Since Volvo’s IPO in 2021, the company has lost two-thirds of its value, and sales have underperformed expectations. Additionally, Volvo is facing mounting pressure from the U.S. market, where it has struggled with both regulatory challenges and competition from local automakers. The company’s stock has become a target for short sellers, intensifying the need for swift action.
One of Samuelsson’s most pressing challenges is the impact of U.S. trade tariffs, particularly in light of Volvo’s majority ownership by Zhejiang Geely Holding Group Co., a Chinese conglomerate. This connection has led to fears that new U.S. regulations could eventually result in a ban on Volvo vehicles. While Samuelsson has reassured shareholders that the company can manage these regulatory risks, the potential for a complete ban remains a significant threat.
Samuelsson has already taken action to address these challenges. He replaced Volvo’s chief financial officer, adjusted the company’s return-to-office policy, and is considering increasing production in the U.S.
Despite these hurdles, Volvo is actively working to strengthen its U.S. presence. The company is expanding its South Carolina production facility to include more models, and its EX90 SUV, produced locally, remains a key product for the U.S. market.
Correction: European production of the EX30 began on April 25, 2025. An earlier version of this article incorrectly stated that production began in late 2024.
