Volvo Cars to produce new vehicle in US as tariffs – Business News
Volvo Cars on Tuesday introduced plans to produce a new hybrid model in the US as its provide chain continues to really feel the stress from President Trump’s tariffs.
The Swedish automaker is aiming to add a next-generation hybrid model to the manufacturing line at its Ridgeville, South Carolina plant close to Charleston earlier than 2030, the company mentioned in a press release.
“The Charleston plant is foundational to our strategic growth plan for the US,” Luis Rezende, president of Volvo Cars Americas, mentioned in a assertion Tuesday.
The Swedish automaker is aiming to add a next-generation hybrid model to the manufacturing line at its Ridgeville, South Carolina plant. AFP by way of Getty Images
“By adding another model into production here, we’ll take a big step toward realising the full potential of our local manufacturing investments and workforce, and accelerate progress toward our ambitious commercial targets in the coming years.”
Like different world automakers, Volvo Cars – which is celebrating its seventieth anniversary in the US – has been left scrambling to rearrange its provide chain to keep away from the brunt of Trump’s tariffs.
The White House struck a commerce deal with the 27-nation European Union in July that may slash tariffs on international automobiles to 15%.
But in the meantime, imported automobiles are dealing with a 27.5% responsibility.
After Trump unveiled sweeping tariffs in April, Volvo Cars introduced plans to ramp up its vehicle manufacturing in the US.
In July, Volvo mentioned it’s going to begin producing its standard XC60 mid-size SUV on the South Carolina plant beginning late 2026.
President Trump at the moment has a 27.5% import tax on international automobiles. Getty Images
Currently, the manufacturing unit solely makes Volvo’s absolutely electric EX90 SUV and the luxurious electric Polestar 3.
Volvo emerged as a main identify in the EV industry, with plans to section out all non-electric fashions by 2030.
It reversed course on this plan final yr and pledged to keep hybrid fashions amongst its lineup.
