As additional tariffs of 25 per cent on car imports into the US could be implemented in April, Volvo could move the production of some models to the US. If or which models could be manufactured in the US remains to be seen.
It is not a done deal yet. The carmaker has emphasised that the decision to shift production to the US, or which models and platforms could roll off production lines there, depends on how high the reciprocal tariffs imposed by the US administration will be.
“It’s looking like that number is going to go up… if it’s 10% each way, we can cope with that, but if it goes to 25% it’s a hell of a lot more difficult from a profit perspective,” CEO Jim Rowan told Reuters. “We have space, paint shops, the buildings, all that’s there.” he said. “We just need to make a final decision on which models and which platforms that we would move to the USA.”
Volvo currently builds the all-electric EX90 at its factory in Ridgeville, South Carolina, as well as the Volvo S60. The plant has an annual production capacity of 150,000 vehicles. The company has made big investments in this factory in recent years. In addition to expanding it significantly, it refurbished the body shop and paint shop. The North American strategic production site now houses a battery pack production line as well.
According to the Reuters article, the Swedish carmaker could move the production of the mild hybrids XC60 and XC90 to the US. Again, a decision is pending and will depend on the tariffs imposed on auto imports to the US next month. “We’d have to wait and see the tariff quotes and then that would help us make that decision,” Rowan said.
This is not the first time that Volvo has shifted production plans due to tariffs. Following EU tariffs on China-made EVs, Volvo moved production of the EX30 from China to Europe. The electric SUV will roll off the production line at the Belgian plant in Ghent in the coming weeks. According to Rowan, Volvo intends to stick to the plan to import the vehicle to the US from there.
