Volvo Cars said on Tuesday it will begin producing a new hybrid model in the United States by the end of the decade as it adjusts to U.S. tariffs on imported vehicles. The model, details of which have not been released, will be designed specifically for the U.S. market and increase capacity utilization at Volvo’s South Carolina plant.
“It will take time until America is electric everywhere,” Volvo Cars CEO Hakan Samuelsson said. He described the new hybrid as “more an electric car, but with a Plan B. When the battery is flat, you have a combustion engine kicking in, but normally you’d drive it electric.”
The South Carolina factory currently builds the fully electric EX90 SUV and the Polestar 3, but these models occupy only a portion of the plant’s annual 150,000-vehicle capacity. Volvo also plans to start production of the XC60 mid-size SUV at the site from late 2026.
Luis Rezende, president of Volvo Cars’ Americas operations, said, “By adding another model into production here, we’ll take a big step toward realising the full potential of our local manufacturing investments and workforce.” The announcement coincides with Volvo’s 70th anniversary in the United States.
Volvo, which had previously aimed to phase out all non-electric models by 2030, reversed course last year, confirming that hybrids will remain part of its lineup. Samuelsson noted that recent U.S.-EU trade agreements, which cut tariffs on European cars to 15% from 27.5%, will make U.S.-produced vehicles like the EX90 more competitive in Europe. “With this 10% reduction, we have the possibility to grow,” he said.
Source: Reuters
