Volvo eyes U.S. move for XC60 and XC90 in a shift with big stakes

Volvo eyes for the prize

Volvo has decided to build its most popular cars, the XC60 and XC90, in the United States. These SUVs are loved by American drivers for their space, comfort, and safety.

Making them in the U.S. helps Volvo avoid extra taxes from car tariffs. This move shows that Volvo is serious about growing in America and keeping car prices fair.

What sparked the change?

This big shift started because of auto tariffs from former President Donald Trump’s policies. These tariffs add extra costs when cars are brought in from other countries.

To save money and stay competitive, Volvo chose to build its cars closer to its buyers. Building in America helps the company avoid the tariffs and keep prices down.

Why the XC60 comes first

Volvo will begin building the XC60 SUV in late 2026. It’s a smaller SUV that many families in the U.S. enjoy driving.

This model of its XC60 SUV sells well, making it a smart first choice for local production. Starting with a strong seller helps Volvo build success early in the plan.

XC90 joins later

After the XC60, Volvo will start building the larger XC90 SUV in October 2028. The XC90 has more seats and space, making it great for families or road trips.

Since it costs more, avoiding tariffs on this car will make a big difference. Volvo hopes that American production will increase sales and help the model stay strong in a very competitive SUV market.

South Carolina gets the job

The Ridgeville, South Carolina, plant will build the XC60 and XC90 SUVs. This plant has not been used to its full potential in recent years.

Bringing in these popular models will boost their use and help bring more jobs to the area. Volvo’s choice is expected to benefit both the company and local workers who live near the factory.

The plant’s big potential

Volvo’s South Carolina plant can make up to 150,000 cars every year. However, it’s only working at 13% of that capacity right now, which is very low.

Adding new models like the XC60 and XC90 can change that quickly. This plan will not only help Volvo grow, but it will also make better use of the factory’s size and equipment.

How many will be built?

Reports say Volvo could make 60,000 XC60s and 50,000 XC90s each year in America. Those numbers show just how important these SUVs are to Volvo’s sales in the U.S.

Making them locally helps lower costs and supports the strong demand. This big step will give the plant more work and help Volvo keep its place in the American SUV market.

Volvo’s strategy explained

Volvo follows a plan called “build where we sell,” and this idea helps it lower costs and serve buyers faster. Instead of shipping cars from far away, the company wants to make them close to home.

With rising taxes and trade costs, this plan is even more important now. Volvo believes that making cars in the U.S. shows care for both customers and the business.

Sales numbers tell the story

In one year, Volvo sold nearly 39,500 XC90s and about 38,900 XC60s in the United States. Together, these two models made up almost 63% of all Volvo sales in the country.

This proves that the XC60 and XC90 are favorites among buyers. Producing them locally is a smart decision that matches strong demand with local resources and better cost control.

Trouble with the EX90

The Ridgeville plant already builds a different SUV called the EX90, but it isn’t doing well in sales. Only 1,316 EX90s were sold in the U.S. during the first half of 2025.

That’s not enough to keep the plant busy or profitable. By adding the XC60 and XC90, Volvo hopes to turn things around and make the factory much more useful.

Polestar 3 also made here

Volvo’s Ridgeville plant also builds the Polestar 3, which is part of its electric car lineup. Just like the EX90, this car has not seen high demand in the U.S. market.

Sales have been slow, making it harder for the plant to stay busy. Adding popular models like the XC60 and XC90 could help the factory become more active and bring better results for the company.

Fighting a global trade war

Volvo’s decision to build cars in the United States is also a smart way to handle the global trade war. By making cars locally, the company avoids many extra taxes and fees.

This helps them save money and keeps car prices from going too high. In a time of rising costs, Volvo’s choice to build where it sells gives it an important advantage.

Looking at the ES90

Volvo may also move production of the ES90 to the United States if things go well. Right now, that model is made in China and can’t be sold in the U.S. easily.

Tariffs make it too costly for American buyers. If the XC60 and XC90 plans work, Volvo might start building more models here to avoid high costs and improve local sales.

The official word from Volvo

Volvo confirmed that XC60 production will begin in 2027 at the South Carolina plant. The company has not officially confirmed the XC90 plans yet, but they are expected to follow.

A spokesperson said Volvo will share more news soon. For now, they are focused on their idea of “building where we sell,” which helps keep them strong in the changing market.

What experts are saying

Industry experts believe Volvo’s new production plan is a smart and needed change. Building popular cars in the U.S. makes sense for both saving money and keeping customers happy.

The XC60 and XC90 are well-known and trusted by American drivers. Experts think this move could help Volvo grow and even encourage other carmakers to follow the same path.

Want more insights? Volvo Cars pushes back mass production timeline at new Slovakia factory.

New jobs for South Carolina

This change could mean hundreds of new jobs for people living in South Carolina. As the plant becomes busier, more workers will be needed for building, testing, and shipping cars.

This is good news for the local economy and nearby businesses. Volvo’s plan could bring fresh energy and new opportunities to the whole community around the Ridgeville factory.

In related news, Volvo EVs and hybrids were recalled for possible brake failure. Drivers are urged to check their vehicles for safety updates.

Let us know what you think of Volvo’s latest strategy. Would you consider buying a locally built XC60 or XC90?

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This slideshow was made with AI assistance and human editing.