Volvo is thinking about more production in the United States because it provides for an increase in prices against European cars
March 5, 2025 at 6:34 PM

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- Volvo is open to the displacement of the manufacture of some of its models in the United States.
- The CEO of Volvo indicates that the decision depends on the importance of the price hike on cars manufactured by the EU.
- Currently, the ex90 is manufactured in the United States, with the ability to add more models.
The HOKEY-COKEY price continues, and it is not only us, the car manufacturers who try to understand what to do then. Volvo, fresh from the launch of its new ES90 sedan, confirmed that managers plan to move production in the United States to avoid the prices offered by the Trump administration.
To date, the 25% prices of President Trump on Canadian and Mexican cars are expected to come into force in April, after being postponed by one month after the concerns of Ford, Stelllantis and GM.
Read: After saying that the Big 3 de Détroit were enthusiastic about the prices, Trump speaks to Big 3 and pause Prices
However, neighbors of the United States were not the only threatened by prices. European exports to the United States are also at risk, President Trump suggesting that cars produced in the European Union would be slapped with a similar right of 25%.
Talk to ReutersThe CEO of Volvo, Jim Rowen, said that the company would not be able to bear a significant increase in prices, which is currently at 2.5%. “It seems that this number will increase … If it is 10% in each direction, we can face it,” said Rowen. “But if it goes 25%, it’s much more difficult from the point of view of profit.”

Volvo belongs to Geely de China, but the production of the ex30 of Volvo was moved from China to Europe to avoid the prices taken by the EU on Chinese manufacturing cars. The initial plan was to meet the American and European demand for the Volvo Ghent plant in Belgium. However, if the prices against vehicles manufactured by the EU are on the agenda, production can be moved to the United States.
Plus: 47 cars made in Canada and Mexico are about to see major price increases
The American Volvo factory, based in Charleston, in South Carolina, already manufactures the SUV Ex90, while other hybrid and entirely electric models are imported from Europe. According to Rowen, the factory has the capacity to move more production in the United States.
In addition to the ex30, other models that could be manufactured in the United States include the XC60 and the XC90, which are based on the same platform. “We had to wait and see the tariff quotes, then it would help us make this decision,” said Rowan.
