Volvo to introduce new hybrid model in U.S. amid tariffs

Published 23/09/2025, 11:22
© Reuters.

Investing.com -- Volvo Cars announced Tuesday it will start manufacturing a new hybrid model in the United States before the end of the decade, as the Swedish automaker adapts to President Donald Trump’s tariff policies.

The new model, which has not yet been detailed, will be specifically designed for the U.S. market and will help increase capacity utilization at Volvo’s South Carolina plant, according to a company statement.

This announcement follows the CEO’s April statement that Volvo would increase U.S. production. In July, the company revealed plans to begin manufacturing its popular XC60 mid-size SUV at the South Carolina facility starting in late 2026.

Currently, the factory only produces Volvo’s fully electric EX90 SUV and the Polestar 3, which together use only a small portion of the site’s 150,000-vehicle annual capacity.

"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," said Luis Rezende, president of Volvo Cars’ Americas operation.

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