Volvo Cars declared Wednesday that it will relocate production of its best-selling model, the XC60, to South Carolina to sidestep tariffs that could affect profitability. The automaker’s $1.2 billion manufacturing facility in Ridgeville, which currently assembles the EX90, is scheduled to begin assembling the midsize XC60 SUV by late 2026.
“Adding the XC60 to our Charleston production line will further strengthen its position and attractiveness in the competitive US market, while supporting and creating American manufacturing jobs,” said Hakan Samuelson, Volvo Cars CEO.
Volvo launched its 2.3 million-square-foot facility in South Carolina in 2018. According to Automotive News, in 2021, it was “the cornerstone of the Swedish automaker’s ambitious plan to become an EV-only brand by 2030.” However, the Ridgeville factory, which produced roughly 20,000 vehicles last year, is currently operating at just 13% of its full capacity.
Volvo’s recent production changes come in the wake of serious financial challenges that the company disclosed earlier this week. The automaker revealed it will take a $1.2 billion cash impairment charge—a write-down reflecting the reduced value of certain assets, caused by rising tariff costs and delays in launching new electric vehicle models.
Volvo indicated that relocating certain manufacturing operations to the United States would help reduce the impact of the 25% tariff levied on imported vehicles.
During the first half of 2025, Volvo’s XC60 recorded an impressive 23% growth in the U.S. The model now makes up more than one-third of Volvo Cars’ overall U.S. sales this year, with plug-in hybrids contributing roughly 25% to that figure.
Volvo Cars Americas president Luis Rezende said, “The XC60 is the right car for this market. It offers the best of Volvo in a versatile size with the powertrain options to suit our US customers.”
Over the past decade, Volvo has invested $1.3 billion into modernizing the Ridgeville plant, resulting in major upgrades such as a revamped body and paint shop, along with the installation of a new battery pack production line. The upcoming addition of the XC60 model is anticipated to bolster local job opportunities.
Volvo Cars also confirmed that the facility will continue manufacturing the fully electric, seven-seat EX90 SUV, an option designed for customers seeking either more interior space or a full transition to electric driving.
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