Volvo Cars plans to produce its XC60 SUV in South Carolina starting late 2026, citing U.S. auto tariffs. The model saw a 23% sales increase in the U.S. in the first half of 2025. The company will incur a $1.17 billion impairment charge due to tariffs and launch delays for its ES90 and EX90 models.

Volvo Cars, owned by Geely Holding, imports most vehicles for the U.S. market from Europe. The company’s CEO aims to boost U.S. car production and regionalization efforts. It will take up to two years to expand production, leading to pressure on profit margins and higher prices for customers.

CEO Hakan Samuelsson plans to add a popular hybrid model to the South Carolina plant. Volvo Cars aims to increase U.S. car production and regionalization efforts in the next two years. The company faces challenges due to U.S. auto tariffs but remains committed to expanding its presence in the American market.

Read more at Yahoo Finance: Volvo Cars to start mid-size SUV production at US plant next year