V olvo Cars, a subsidiary of China’s Geely, plans to increase vehicle production in the United States and may introduce a new model at its U.S. plant in response to tariffs introduced by President Donald Trump, CEO Håkan Samuelsson said Thursday.
Under the new policy, cars manufactured outside the U.S. now face a 25% tariff, with additional duties on spare parts set to be phased in over time.
“We will have to increase the number of cars we build in the U.S. and likely move another model to that factory,” Samuelsson told Bloomberg.
Volvo currently assembles its EX90 electric model at its Ridgeville, South Carolina plant, alongside the Polestar 3, produced by Volvo’s electric vehicle spinoff, Polestar.
The company is now evaluating which model to add to its U.S. production lineup. “We will have to look closely at the options,” Samuelsson added.
When contacted by AFP, Volvo Cars declined to provide further details on its expansion plans.
Samuelsson, 74, previously served as Volvo’s CEO from 2012 to 2022 before returning to the role on April 1 following the dismissal of Jim Rowan.
Volvo has warned that 2025 will be a challenging year, citing the impact of tariffs and a slowdown in electric vehicle adoption. The company has adjusted its electrification strategy, scrapping its initial goal of selling only electric vehicles by 2030. Instead, it now aims for EVs to make up between 90% and 100% of sales by that year.
Volvo’s expansion in the U.S. is seen as a strategic move to mitigate tariff-related costs while reinforcing its position in the evolving automotive market.
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