Volvo to Produce New Hybrid Model in the US by 2030
Date: 24-sep-2025 | By: Nuztrend Team
Photo by Clayton Malquist on Unsplash
Volvo Cars has announced plans to begin production of a new hybrid model in the United States by the end of the decade. This strategic move aims to mitigate the impact of U.S. trade tariffs and strengthen Volvo's position in the North American market.
Strategic Response to Tariff Pressures
The decision to produce a new hybrid model in the U.S. comes in response to increasing tariff pressures from U.S. policies under President Donald Trump. The current import duties stand at 27.5%, despite a recent U.S.-EU trade deal that aims to reduce these tariffs to 15% (Reuters).
By manufacturing vehicles domestically, Volvo aims to circumvent these tariffs, ensuring more competitive pricing for its products in the U.S. market.
Expansion of Ridgeville Plant
The new hybrid model will be produced at Volvo's Ridgeville plant in South Carolina, which currently manufactures the fully electric EX90 SUV and the luxury electric Polestar 3. The plant has a capacity of 150,000 vehicles annually but has been operating well below this capacity (Car and Driver).
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In addition to the new hybrid model, Volvo plans to begin production of the popular XC60 mid-size SUV at the Ridgeville facility in late 2026. This expansion underscores Volvo's commitment to increasing its U.S. manufacturing footprint and meeting the growing demand for hybrid and electric vehicles.
Commitment to Electrification
While Volvo initially committed to a fully electric lineup by 2030, the company has adjusted its strategy to retain hybrid models. This decision reflects the varying pace of electrification across different regions and aims to offer U.S. consumers a broader range of vehicle options (New York Post).
Conclusion
Volvo's decision to produce a new hybrid model in the U.S. by 2030 marks a significant step in the company's strategy to enhance its presence in the North American market. By expanding production at the Ridgeville plant and adapting its product lineup, Volvo aims to meet the evolving needs of U.S. consumers while navigating the challenges posed by trade tariffs.
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