STOCKHOLM, March 5 (Reuters) – Volvo Cars may shift some of its vehicle production to the United States in response to potential tariffs, but the company still plans to export its EX30 SUV model from Europe to the U.S. later this year, according to a statement from the CEO on Wednesday.
Jim Rowan, Volvo Cars’ CEO, made the comments in response to potential new tariffs. Last year, the company relocated production of the EV EX30 from China to Europe to sidestep European Union tariffs.
President Donald Trump’s tariff threats could necessitate further adjustments.
Production of the EX30 SUV is slated to begin in Europe this quarter. Volvo aims to boost production to meet demand in both the European and U.S. markets during the second half of 2025, Rowan told Reuters.
Currently, exports of vehicles from Europe to the U.S. face a 2.5% tariff. “It’s looking like that number is going to go up… if it’s 10% each way, we can cope with that, but if it goes to 25% it’s a hell of a lot more difficult from a profit perspective,” Rowan said.
Volvo has sufficient capacity at its U.S. assembly plant to accommodate increased production. “We have space, paint shops, the buildings, all that’s there,” he explained. “We just need to make a final decision on which models and which platforms that we would move to the USA.”
The company manufactures its EX90 SUV at its Charleston, South Carolina, plant and currently imports both hybrid and electric models from Europe.
Rowan stated that Volvo might transfer production of its XC60 or XC90 models, which share the same platform, to the Charleston plant or consider models utilizing different technology. “We’d have to wait and see the tariff quotes and then that would help us make that decision,” Rowan said.
During the week, the Swedish company, under the majority ownership of China’s Geely, unveiled its sixth electric car, the fully electric ES90 sedan, which is part of its plan to replace most combustion engine cars with fully electric vehicles by 2030.
This vehicle, projected to have a battery range exceeding 700 km (435 miles), will be constructed at Volvo Cars’ manufacturing facility in Chengdu, China, which the company considers its primary market.
Reporting by Marie Mannes Editing by Terje Solsvik, Barbara Lewis, Philippa Fletcher
