Volvo reduces assortment in the US due to tariffs
Volvo’s assortment in the US is becoming increasingly limited. Due to new tariffs, the company is abandoning the sale of sedans and station wagons on the American market. Out of 13 global Volvo models, only half will remain in the US, with all but one being crossovers.
Production of the Volvo S90 is suspended as it is assembled in China and is now subject to a 100% import tariff. The company also will not be able to profitably sell the new ES90 in the US. The V90 station wagon will also cease sales.
Changes in Volvo’s strategy
Volvo has been particularly hard hit by tariffs because most of its models are manufactured in Europe or China. Cars from Europe are now subject to a 27.5% tariff, while those from China face a 100% tariff. Because of this, the company is forced to write down 11.4 billion Swedish kronor in the second quarter.
Production of the XC60 in South Carolina could become key for Volvo. This model already accounts for over a third of the brand’s sales in the US, showing a 22.9% growth compared to last year. Although the XC60 lags behind European competitors in terms of technology, it remains popular.
It is likely that Volvo will move even more production to the US. Some sources report plans to assemble the XC90 in South Carolina, although there is no official confirmation yet. These changes show how global economic factors impact automakers’ strategies, forcing them to adapt to new trade conditions.