by Volvo may start production of popular models in the USA
Volvo’s plant in South Carolina, which currently produces the less popular EX90 and Polestar 3 models, may soon begin production of the much more in-demand XC60 and XC90 crossovers. This will allow the company to increase the utilization of its production capacity, which is currently used at only 13%.
Demand for Volvo models in the USA
Sales statistics show a significant difference in model popularity: in June 2024, 3,004 XC90s and 2,421 XC60s were sold in the USA, while the much newer EX90 found only 1,972 buyers over half a year. In 2023, the XC90 and XC60 together accounted for 63% of all Volvo sales in America.
“Volvo Cars adheres to a long-term strategy of producing where we sell – a principle that is now more important than ever”
The possibility of localizing production of the EX30 electric vehicle, which is currently imported from China and suffers from high customs duties, is also being considered. Such changes will allow Volvo to increase profitability in the key American market and utilize the infrastructure of its South Carolina plant more efficiently.
The potential decision to expand the production lineup comes at a difficult time for automakers, when trade wars and shifts in demand are forcing companies to seek new approaches to global logistics. The successful implementation of these plans could be an important step in strengthening Volvo’s position in the North American market.
