SC Volvo plant to start making popular SUV model because of Trump tariffs. Here’s what to know
Volvo Cars will begin building its most popular vehicle, the XC60 midsize SUV, at its Ridgeville facility in late 2026, following the U.S. tariffs on imported cars and electric vehicles.
According to a press release from Volvo Cars, the addition of this model to their South Carolina production line will be used “to increase the utilization of its Charleston plant and to reduce the effects of import tariffs.”
President Donald Trump has announced a host of tariffs on all manner of products and materials in recent months, which has thrown global trade into disarray and led to price increases for some products bought in the U.S.
The changes in global trade have driven a transformation in automobile operations, with the transition at Volvo’s South Carolina facility representing a key milestone in its U.S. strategy and offering a significant boost to the state’s automotive manufacturing sector.
Located just outside of Charleston, this production shift brings Volvo’s bestselling model to American soil for the first time.
Why South Carolina?
Volvo states the XC60 is currently the best-selling Volvo model in the U.S., accounting for over 33% of sales so far in 2025.
The company also anticipates that the addition of this model will help ramp up output at its plant in Berkeley County, which can produce 150,000 vehicles per year, as well as help stabilize operations and expand its local footprint.
“Adding the XC60 to our Charleston production line will further strengthen its position and attractiveness in the competitive U.S. market, while supporting and creating American manufacturing jobs,” said Hakan Samuelsson, CEO of Volvo Cars, in a statement.
Currently manufactured in Sweden and China, the XC60 will join the all-electric EX90 and the Polestar 3 SUV on the South Carolina production line.
Both are already assembled at the facility, which Volvo opened in 2015 after receiving more than $200 million in state and local incentives.
Volvo officials said the decision aligns with the company’s long-held “build where we sell” strategy, which has become even more vital amid ongoing global trade tensions and rising tariffs.
In addition to its traditional mild hybrid version, the Ridgeville-built XC60 will also be produced as a plug-in hybrid to broaden the company’s electrification efforts.
History of the Lowcountry facility
Since breaking ground in 2015, Volvo has invested over $1.3 billion in the Ridgeville plant with recent upgrades including a state-of-the-art battery pack production line and major expansions to the facility’s body and paint shops.
The plant first started production in 2018 with the S60 sedan, which was discontinued last year as the plant shifted its focus toward production of the EX90.
This story was originally published July 22, 2025 at 6:00 AM.
