Volvo Cars to produce new vehicle in US as tariffs pressure auto supply chains

Volvo Cars on Tuesday announced plans to produce a new hybrid model in the US as its supply chain continues to feel the pressure from President Trump’s tariffs.

The Swedish automaker is aiming to add a next-generation hybrid model to the production line at its Ridgeville, South Carolina plant near Charleston before 2030, the company said in a press release.

“The Charleston plant is foundational to our strategic growth plan for the US,” Luis Rezende, president of Volvo Cars Americas, said in a statement Tuesday.

“By adding another model into production here, we’ll take a big step toward realising the full potential of our local manufacturing investments and workforce, and accelerate progress toward our ambitious commercial targets in the coming years.”

Like other global automakers, Volvo Cars – which is celebrating its 70th anniversary in the US – has been left scrambling to rearrange its supply chain to avoid the brunt of Trump’s tariffs.

The White House struck a trade deal with the 27-nation European Union in July that will slash tariffs on foreign cars to 15%.

But in the meantime, imported vehicles are facing a 27.5% duty.

After Trump unveiled sweeping tariffs in April, Volvo Cars announced plans to ramp up its vehicle production in the US.

In July, Volvo said it will start producing its popular XC60 mid-size SUV at the South Carolina plant starting late 2026.

Currently, the factory only makes Volvo’s fully electric EX90 SUV and the luxury electric Polestar 3.

Volvo emerged as a major name in the EV industry, with plans to phase out all non-electric models by 2030.

It reversed course on this plan last year and pledged to keep hybrid models among its lineup.