Geely’s Volvo Cars is set to bolster its US manufacturing operations by adding the XC60 mid-size SUV to its production line in the Ridgeville car plant, South Carolina, US.

The facility, which currently assembles the fully electric EX90, is expected to commence XC60 production in late 2026.

After the Trump administration introduced additional tariffs on automotive imports earlier this year, several OEMs are reassessing their manufacturing strategies and considering making more US-market bound vehicles at available US plants rather than importing them.

In the first half of 2025, the XC60 saw a nearly 23% increase in US sales, underscoring its significance in the market. The model accounts for over one-third of Volvo Cars’ US sales in the country this year, with a quarter of these being plug-in hybrids.

Volvo Cars Americas president Luis Rezende said: “The XC60 is already beloved around the world and in the US and we’re proud we’ll soon be able to offer American families the XC60 they love, assembled here by American autoworkers.

“The XC60 is the right car for this market. It offers the best of Volvo in a versatile size with the powertrain options to suit our US customers.”

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Volvo Cars’ Ridgeville plant was established nearly a decade ago.

With a $1.3bn investment over the past ten years, the plant has undergone extensive upgrades, including a renewed and expanded body and paint shop, as well as a new battery pack production line.

The addition of the XC60 is expected to secure local employment.

Volvo Cars CEO Håkan Samuelsson said: “Adding the XC60 to our Charleston production line will further strengthen its position and attractiveness in the competitive US market, while supporting and creating American manufacturing jobs.

“It is also in line with our ambition to build where we sell and reinforces our long-term commitment to the US market, where we are celebrating our 70th anniversary and have sold over 5 million cars.” 

Volvo Cars noted that the Ridgeville facility will continue to produce the fully electric, seven-seater EX90 SUV, catering to those desiring more space or a complete shift to electric vehicles.

Recently, Volvo Cars announced a one-off non-cash impairment charge of Skr11.4bn ($1.19bn) for the second quarter (Q2) of 2025, attributed to financial adjustments for its EX90 and ES90 platforms.

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