Geely’s Volvo Cars is making a strategic move to enhance its US manufacturing operations by introducing the popular XC60 mid-size SUV to its production line at the Ridgeville car plant in South Carolina. The facility, which currently produces the fully electric EX90, is projected to start XC60 production by late 2026.
This decision comes in the wake of the Trump administration’s imposition of additional tariffs on automotive imports, prompting various OEMs to reconsider their manufacturing strategies. By producing more vehicles in US plants rather than importing them, Volvo Cars aims to mitigate the impact of these tariffs.
The XC60 has seen a significant increase in US sales, with a nearly 23% rise in the first half of 2025. This model accounts for over one-third of Volvo Cars’ US sales, with a quarter of them being plug-in hybrids. Recognizing the market demand for the XC60, Volvo Cars Americas president Luis Rezende expressed pride in offering American families a locally assembled XC60.
The Ridgeville plant, established nearly a decade ago with a $1.3 billion investment, has undergone extensive upgrades, including a revamped body and paint shop and a new battery pack production line. The addition of the XC60 is expected to create more job opportunities within the local community.
Volvo Cars CEO Håkan Samuelsson emphasized that adding the XC60 to the Charleston production line will strengthen the brand’s position in the competitive US market and support American manufacturing jobs. This decision aligns with Volvo Cars’ commitment to building where they sell, reinforcing their long-term presence in the US market.
While the Ridgeville facility will continue producing the fully electric EX90 SUV, Volvo Cars remains focused on meeting various customer preferences, including those seeking more space or transitioning to electric vehicles.
In other news, Volvo Cars recently announced a one-off non-cash impairment charge for the second quarter of 2025, reflecting financial adjustments for its EX90 and ES90 platforms.
As Volvo Cars continues to innovate and expand its manufacturing capabilities, the addition of the XC60 to the Ridgeville plant underscores the company’s commitment to meeting customer demands, supporting local economies, and driving sustainable growth in the automotive industry.
