by Volvo halts EX90 production due to parts shortage
Volvo has temporarily suspended production of its new electric SUV, the EX90, at its plant in Ridgeville, South Carolina. The reason is a shortage of certain components, although the company has not yet specified which ones. This is not the first issue with the launch of this model—its debut was previously delayed due to problems with Lidar software.
The production halt is reminiscent of the pandemic-era situation when automakers faced semiconductor shortages. Customers awaiting their EX90s are advised to contact dealers for updates on their order status.
Volvo’s challenging situation in the US
Recently, the company announced the layoff of 125 employees at the same plant, citing “changing market conditions” and the tariff policies of former President Trump. This phrase likely indicates a slowdown in electric vehicle sales. Despite this, Volvo plans to create 4,000 new jobs in South Carolina.
The Ridgeville plant recently completed production of the S90 sedan, leaving it with spare capacity. Other models, such as the XC60 or the compact EX30, could be produced here. However, company management has warned that it may shift some EX30 production from Belgium to the US if countries fail to agree on reducing customs tariffs.
The EX90 situation illustrates the challenges of launching new electric models in today’s environment. Manufacturers face technical hurdles, political uncertainty, and fluctuating demand, requiring flexible decision-making. Volvo’s next steps will depend on both supply chain stabilization and the outcome of trade negotiations between the US and the EU.
