Archive · 23 Sep 2025
Volvo Expands US Production to Meet Demand, Avoid Tariffs
Volvo, a car company, is making more cars in the United States.
They want to avoid paying extra taxes called tariffs on cars made in other countries, especially China and Europe.
By building cars in South Carolina, they can sell them for less money.
They plan to make a new hybrid car and the popular XC60 SUV in the US.
This helps them sell more cars and keep up with the growing demand for their vehicles in America.
This move is part of a larger plan to make cars where they sell them.
Volvo is expanding its U.S. production capacity in South Carolina.
The company plans to build a new next-generation hybrid model in the U.S.
Volvo will begin producing the XC60 midsize SUV at its South Carolina plant by late 2026.
This expansion is part of a strategy to avoid tariffs and meet rising demand in the U.S.
Volvo has invested $1.3 billion in its U.S. plant.
- Who
- Volvo Cars
- What
- Expanding US production to manufacture a new hybrid model and XC60.
- When
- Announced on Tuesday
- Where
- Ridgeville, South Carolina
- Why
- To avoid tariffs and meet increasing demand.
- Company
- Volvo Cars (owned by Geely)
- Location
- Ridgeville, South Carolina
- Investment
- $1.3 billion total
- Models Produced
- EX90 SUV, Polestar 3, next-generation hybrid, XC60 (by late 2026)
- Production Capacity
- 150,000 vehicles per year
- Tariff Impact
- Tariffs up to 15% on imports from Sweden/EU, 100% on China-made vehicles