President Donald Trump has repeatedly stated that new customs restrictions stimulate automakers to expand production in the United States. Although some brands have indeed increased their presence in the local market, Volvo unexpectedly announced a 5% staff reduction at its plant in Charleston, South Carolina.

During the presentation of its first-quarter financial results, the company confirmed that these reductions are not related to usual restructuring processes. In total, the layoffs will affect about 125 employees out of 2,500 working at the enterprise. Volvo did not specify which positions will be eliminated or whether this will affect production volumes.

The plant’s capacity in South Carolina allows for the production of up to 150,000 cars per year. Currently, only the S60 and the electric Polestar 3 are assembled there. Management explained the staff reduction by fluctuations in international trade, changes in customs policy, and market condition instability.

Despite the reduction of over a hundred jobs, Volvo stated that the American market remains important for the company’s long-term strategy. The manufacturer confirmed its intentions to create 4,000 new jobs in South Carolina, but did not specify the timeline for the implementation of these plans.

It seems that Volvo is trying to minimize costs against the backdrop of global economic changes related to the new US course. Just last week, CEO Håkan Samuelsson reported considerations regarding the launch of an additional model at American facilities. Although the specific model was not named, the most likely candidates are the S60 and XC90.

The Trump administration’s customs policy has also forced Volvo to revise its lineup for the American market. Starting next year, the company will discontinue sales of the S90 sedan, which is imported from China. This will allow a focus on models such as the XC40, XC60, and XC90.

President Donald Trump has repeatedly stated that new customs restrictions stimulate automakers to expand production in the US. Although some brands have indeed increased their presence in the local market, Volvo unexpectedly announced a 5% staff reduction at its plant in Charleston, South Carolina.

During the presentation of its first-quarter financial results, the company confirmed that these reductions are not related to usual restructuring processes. In total, the layoffs will affect about 125 employees out of the 2,500 working at the enterprise. Volvo did not specify which positions will be eliminated or whether this will affect production volumes.

The plant’s capacity in South Carolina allows for the production of up to 150,000 cars per year. Currently, only the S60 and the electric Polestar 3 are assembled there. Management explained the staff reduction by fluctuations in international trade, changes in customs policy, and market conditions instability.

Despite cutting over a hundred jobs, Volvo stated that the American market remains important for the company’s long-term strategy. The manufacturer confirmed its intentions to create 4,000 new jobs in South Carolina, but did not specify the timing for the implementation of these plans.

It seems that Volvo is trying to minimize costs against the backdrop of global economic changes related to the new US course. Just last week, CEO Håkan Samuelsson reported considerations about launching an additional model at American facilities. Although the specific model was not named, the most likely candidates are the S60 and XC90.

The Trump administration’s customs policy also forced Volvo to revise its lineup for the American market. Starting next year, the company is discontinuing sales of the S90 sedan, which is imported from China. This will allow a focus on models such as the XC40, XC60, and XC90.