Sweden's Volvo Cars said on Wednesday it would start producing its XC60 mid-size SUV in its plant in South Carolina in the US from late 2026.
The shift highlights the carmaker's exposure to US President Donald Trump's car tariffs as it imports most of its hybrid and electric models from Europe.
XC60 sales in the US rose by nearly 23% in the first six months of 2025, the Gothenburg-based company said, adding the model was most popular among US customers.
Volvo Cars, owned by China's Geely Holding, said earlier this week it was booking an impairment charge of 11.4-billion crowns (R20.89bn) in the second quarter related to its ES90 and EX90 models due to tariffs and launch delays.
Most of Volvo Cars' vehicles for the US market, which last year accounted for 16% of group sales, are imported from Europe. The company only produces its high-end SUV EX90 at the Charleston, South Carolina factory. CEO Hakan Samuelsson has earlier said a popular hybrid model needed to be added to the plant.
The CEO said in April the carmaker would produce more cars in the US, while also ramping up its regionalisation efforts.
Samuelsson told Swedish newspaper Dagens Nyheter Volvo Cars would need up to two years to expand its US car production.
"In the short term, within one to two years, it will be about selling the cars we have," he said to DN, adding the situation would put pressure on profit margins and customers will have to pay more.
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