Volvo to Move Part of XC60, XC90 Manufacturing to the U.S.

Volvo to build popular SUVs in South Carolina starting 2027 to cut costs and avoid tariffs

• Volvo plans to build the XC60 SUV in Ridgeville, South Carolina, from 2027, with plans to begin XC90 production there too by 2028.
• The decision is part of Volvo’s response to avoid the Trump administration’s high auto tariffs on imported cars.
• Volvo states that it wants to build cars in a location where it sells them, and the South Carolina plant has the capacity to make more vehicles.

Even though the absolute impact of the U.S. administration’s auto tariffs on imported cars hasn’t hit yet, automobile companies are still finding new ways to lower their costs. A recent report from Automotive News states that Volvo is planning to shift production of its two best-selling models stateside to get rid of most of the tariffs.

With the U.S. automotive import tariffs rising to around 27.5% for European-built vehicles, Volvo has felt the pressure, and so have its customers.

According to the AN report, Volvo will shift the production of the XC60 and XC90 to Ridgeville, South Carolina. It will embark on the XC60 production in January 2026 at its factory near Charleston, South Carolina.

In October 2028, the XC90 might be added to the production. This plan fits with Volvo’s previous messaging that it will possibly make another model at its South Carolina plant, which has the capacity to make more vehicles.

So why XC60 first? Well, this is Volvo’s best seller in the U.S. Sales of the XC60 jumped around 23% in the first half of 2025, which makes it Volvo’s most popular and profitable model stateside. Location production will minimize costs and signal strong commitment to the American buyers.

“Volvo Cars is committed to its long-held strategy of building where we sell—a principle that is more important now than ever,” the spokesperson of Volvo stated. “As part of this strategy, Volvo Cars has previously communicated that it’s considering adding production of another model at our U.S. plant, which has a capacity of 150,000 vehicles per year. We look forward to sharing more soon.”