(Reuters) -Sweden’s Volvo Vehicles mentioned on Wednesday it could begin producing its XC60 mid-size SUV in its plant in South Carolina, United States from late 2026.
The shift highlights the automaker’s publicity to U.S. President Donald Trump’s auto tariffs, because it imports most of its hybrid and electrical fashions from Europe.
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XC60’s gross sales in the US rose by nearly 23% within the first six months of 2025, the Gothenburg-based firm mentioned, including that the mannequin was hottest amongst U.S. clients.
Volvo Vehicles, which is owned by China’s Geely Holding, had mentioned earlier this week that it was reserving an impairment cost of 11.4 billion crowns ($1.17 billion) within the second quarter associated to its ES90 and EX90 fashions attributable to tariffs and launch delays.
Most of Volvo Vehicles’ automobiles for the U.S. market, which final yr accounted for 16% of group gross sales, are imported from Europe. The corporate solely produces its high-end SUV EX90, on the Charleston, South Carolina manufacturing unit. CEO Hakan Samuelsson has earlier mentioned {that a} widespread hybrid mannequin was wanted to be added to the plant.
The corporate’s CEO had mentioned earlier in April that the carmaker would produce extra automobiles within the U.S, whereas additionally ramping its regionalisation efforts.
Samuelsson had advised Swedish newspaper Dagens Nyheter (DN) that Volvo Vehicles would wish as much as two years to develop its U.S. automobile manufacturing. “Within the brief time period, inside one to 2 years, it is going to be about promoting the automobiles we have now,” he mentioned to DN, including the state of affairs would put strain on revenue margins however that clients may also must pay extra.
($1 = 9.7057 Swedish crowns)
(Reporting by Chandni Shah in Bengaluru and Marie Mannes in Gothenburg; Enhancing by Shilpi Majumdar and Shailesh Kuber)