Volvo to build next-gen hybrid in South Carolina, but not due to Trump’s import tariffs
Volvo recently announced its intent to build a new hybrid at its Ridgeville, South Carolina, factory. But it isn’t yet another move to avoid bottom-line-slashing tariffs. Volvo won’t roll its first next-gen hybrid off the South Carolina factory floor until years after the end of this presidential term. The move is also an effort to bring the 10-year-old factory up to its production expectations.
Volvo plans to build a new hybrid at its Ridgeville, South Carolina, location by 2030, doubling down on its hybrid SUVs
Last year, Volvo abandoned its goals to sell an exclusively electrified lineup by 2030. Now, it has a new goal for 2030. Namely, the Swedish automaker wants to roll its next-generation hybrid off the line at its Ridgeville factory near Charleston, South Carolina, by the start of the new decade.
We expect the new Volvo hybrid to be an SUV, as the brand has been sunsetting many of its sedans and wagons, like the now-discontinued V60 Recharge. It will join the fully-electric EX90 SUV, which Volvo currently builds at the South Carolina plant.
The 2.3-million-square-foot facility is also home to the Polestar 3, an EV bearing a striking resemblance to a Volvo sedan. And for good reason, too; Volvo owns Polestar along with China’s Geely.
Next year, the gas-fed Volvo XC60 will join the two EVs at the South Carolina plant. Considering the XC60 is one of the brand’s best sellers, it could be the right move to bring the plant up to capacity.
But not just to avoid tariffs
Although European and Asian automakers are shifting production of various models to stateside locations to sidestep the Trump administration’s aggressive tariff structures, Volvo cites a different motive. The Swedish brand wants the investment to help the brand reach the full output potential of the Ridgeville, South Carolina, location.
The plant was originally a $1.3 billion investment and intended to roll out 150,000 vehicles per year. However, in 2024, the plant rolled out around 20,000 vehicles, just 13% of its intended capacity. Volvo seems confident that the new investment and plant additions will help bring the factory up to speed.
