Volvo Cars is shifting production of its top-selling SUV, the XC60, to its U.S. facility in Ridgeville (near Charleston, South Carolina). By producing the XC60 domestically beginning in late 2026, Volvo is combining tariff management with bolstering its strongest-selling SUV in its most important market.
The move, scheduled for late 2026, is a strategic effort to mitigate the impact of rising U.S. import tariffs on European-built models and to strengthen the XC60’s position in the American market.
The Charleston plant already assembles the fully electric EX90 flagship and has capacity to expand. XC60 U.S. sales were up nearly 23% in H1 2025, making it Volvo’s most popular model stateside.
Localizing production is expected to enhance supply chain resilience, reduce tariff exposure, and affirm Volvo’s commitment to U.S. operations–even though it may require a 1–2 year ramp-up and could modestly increase costs.
