Key Highlights – Volvo Gets Around Tariffs With New Hybrid
🏭 New Hybrid: To be designed for U.S. market, built in South Carolina
🇺🇸 Plant Capacity: Ridgeville facility can produce 150,000 cars per year
📈 Strategy: Expands local production to avoid import tariffs
⚡ Lineup: Complements EVs like EX90 SUV and Polestar 3
💰 Tariffs: Avoids up to 27.5% duties on foreign vehicles
📅 Timeline: XC60 mild hybrid production starts in 2026, new hybrid by 2030
U.S. Tariffs Push Volvo to Expand Local Production
Volvo Cars out of Stockholm has said it will begin producing an all-new hybrid model car in the United States by the end of this decade. This move is one of the ways the Swedish automaker known for safety is fighting President Trump’s tariff policies on foreign cars.
Ridgeville Plant Boosts Local Output
Little is known about the new model as of this writing, but the car will be designed for the U.S. market at the company’s South Carolina plant. The new hybrid will boost the capacity of the facility in Ridgeville and news of the new hybrid was announced to coincide with the company’s 70th anniversary in America.
A Strategy to Get Around Import Duties
This is just one of the ways that Volvo is rethinking production strategies in order to get around current duties on foreign automobiles. In April, Volvo’s interim CEO Hakan Samuelsson said that the auto company would be producing more vehicles in the U.S. and the group announced in July that it plans to start producing its XC60 mild hybrid midsize SUV at the South Carolina plant in late 2026.
Existing U.S. Production at Ridgeville
The Ridgeville plant currently produces the company’s all-electric EX90 SUV as well as the Polestar 3 EV. But according to production data, those models only use a small bit of the factory’s capacity, capable of building 150,000 vehicles per year.
Volvo Balances EV and Hybrid Strategy
“By adding another model into production here, we'll take a big step toward realizing the full potential of our local manufacturing investments and workforce,” said Luis Rezende, president of Volvo Cars' Americas operation.
Trade Policy and Tariff Impacts
While Volvo has positioned itself as being “pro EV” by suggesting it might stop building gasoline powered cars altogether by 2030, the company has since committed to including hybrids as part of its vehicle lineup.
While foreign vehicles face up to a 27.5 percent tariff, the European Union made a deal in July to cut U.S. tariffs on vehicles to 15 percent and because the new hybrid will be built in the U.S., it will only face tariffs on imported parts.
⚡ EV Market & Production Updates
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Read More ➜ - Hyundai Opens $7.6B EV Plant in Georgia
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Read More ➜ - Global EV Sales Up 15% in August
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