by Automakers that import cars to the USA are having a tough time. Volvo, for example, has been selling cars on the American market for decades, but almost 90% of its range is still produced in Europe. In the current conditions, where regionalization due to the tariffs of the Trump era has become a reality, the company recognizes the need to increase local production.
This is exactly what they are doing now. Volvo is investing in its plant in South Carolina, planning to produce more cars within the USA. Under the leadership of Håkan Samuelsson, who took over the company on April 1st after Jim Rowan, the brand is searching for the next model for American production.
For now, the EX90 is the only electric Volvo model assembled locally. Samuelsson hinted that the next car will have both mild hybrids and plug-in versions, so it will most likely be the XC60 or XC90.
Sedans and Wagons Will Remain Overlooked
“A wagon or a sedan is unlikely,” he stated. “If you look at the bestsellers in the USA, they are mostly crossovers. We can’t just bring cars from Europe and expect them to sell well.”
Although Samuelsson did not reveal when Volvo will decide on the new model for the American market, he mentioned plans to visit the USA for discussions with dealers and to select the most promising option.
“The decision must be quick if we want to use our capacities effectively, because we have people who need work,” he added. “Due to tariffs, export opportunities are no longer as attractive.”
In addition to increasing local production, the tariffs from the Trump era are also affecting Volvo’s sales strategy. Next year, the company plans to discontinue sales of the S90 sedan in America, as it is imported from China. Instead, the focus will be on more popular models like the XC40 and XC90.
While Volvo is deciding on the next model for production in the USA, Samuelsson emphasized that the company is making efforts to promote the EX90, hoping to increase sales of this car, which is already being produced in South Carolina.
