Swedish automaker plans to add new model to the factory in South Carolina to mitigate impacts from the barriers imposed by Trump
It announced it on Thursday (3.br.2025) that will increase vehicle production at its factory in South Carolina and add a new model to the assembly line. The measure is a response to 25% tariffs imposed by US President Donald Trump on imported cars.
Volvo CEO Håkan Samuelsson said the company needs to act quickly to reduce the impacts of new taxation. “We will have to increase the number of cars we manufacture in the US and certainly move another model for this factory,” said the executive.
Currently, the Volvo plant in South Carolina produces the EX90 and polestar 3. The company studies which other vehicle will be integrated into the production line. The unit was inaugurated in 2018, but had strategic adjustments due to trade tariffs imposed during Trump’s first term.
Samuelsson, 74, resumed Volvo’s lead this month, replacing Jim Rowan. Under Rowan’s management, the company reduced its sales goals and abandoned the goal of selling only electric vehicles by the end of the decade. Now, the new plan seeks to reverse the 66% drop in Volvo’s value in the last 3 years.
Li Shufu, president of Geely, controller of Volvo, stated that changes in the global scenario require new strategies to deal with stricter commercial barriers. A recovery plan will be presented in the coming weeks to strengthen Volvo’s competitiveness in the US market.
