AC Repair in Ridgeville, SC

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The automaker has invested $1.3 billion in its South Carolina factory since 2015, and said it will continue to invest in the plant to bring the 2.3 million square foot facility into operational capacity. The plant’s current capacity is 150,000 vehicles a year.

Volvo said it sold over 27,000 XC60s in the U.S. in the first eight months of this year, a nearly 20% jump from the same period in 2024, so demand for the mid-size SUV remains strong.

Currently, the plant in Ridgeville, South Carolina, assembles two models, the fully electric EX90 SUV and Polestar 3. Previously, the plant built the S60 sedan, but it was discontinued last year amid sluggish sales. Volvo sold 903 S60s in the U.S. this year through the end of August, a 92% decline from the same period last year.

Volvo’s plan to build more vehicles in the U.S. is in line with the company’s strategic initiative to ensure that each region has the products it needs to meet customer demands, according to the release. It includes a more focused approach in terms of product, technology, manufacturing and commercial to better meet the needs of its customers.

“Our investment plans once again reinforce our long-term commitment to the U.S. market and our manufacturing operations in South Carolina,” said Håkan Samuelsson, Volvo Cars’ CEO, in a statement.

Samuelsson previously served as CEO of the company from 2012 to 2022. In March, Volvo Cars announced he was returning to his former role as CEO and president for a two-year term effective April 1. His return will help the automaker navigate “fast-moving technological shifts” and “growing geopolitical complexity,” the company said at the time.

While company executives didn’t disclose details on Volvo’s next-generation hybrid model, Samuelsson hinted that it’s likely to be some type of full-size, hybrid SUV, a segment that’s popular with U.S. consumers.

“This is a bigger size car for primarily for America,” Samuelsson said during a media roundtable with company executives at its South Carolina factory on Sept. 23. “It should [have] room for big families and the luggage and everything they bring, so you could imagine what type of car.”

Samuelsson also said Volvo’s new hybrid vehicles will serve as a “bridge” towards its goal of producing only EVs sometime after 2030, which is later than its initial target of ending ICE vehicle production by 2030. The plans were revised due to slower-than-expected EV adoption, which also led to other automakers revising their short to mid-term electrification goals to meet growing consumer demand for hybrid models.

“If you look at the strategy of our company, we believe we will come out stronger as an electric company after this transformation,” Samuelsson said. “It will take longer than we thought five years ago, and that’s why we need to be pragmatic and have this type of plug-in [hybrid] or bridge solution.”

Following the launch of the new next-generation hybrid model for the U.S., Volvo plans to launch additional hybrid vehicles until EV adoption becomes more widespread and demand increases.

“It’s not just in one [hybrid vehicle] generation,” Samuelsson said. “We need the second generation to bridge also.”

Ramping up vehicle production in the U.S. will also help Volvo Cars mitigate the impact of tariffs, which the Trump administration had previously set at 25% on imported vehicles from the European Union.

However, the levies decreased to 15% on Sept. 5 as part of an agreement reached between the U.S. and the EU, according to a Federal Register notice from the Department of Commerce. The reduced levies became effective Sept. 5 and were later made retroactive to Aug. 1.

In addition to its plans to build more vehicles in the U.S., Volvo commemorated its 70th year in the U.S. market during a factory event this week, which South Carolina Gov. Henry McMaster attended. The automaker has sold over 5 million vehicles in the U.S. since it first started manufacturing vehicles in the country.

“Volvo Cars’ decision to further invest in Ridgeville reinforces South Carolina’s position as a national leader in automotive manufacturing,” Gov. McMaster said in a statement. “We’re proud to continue our partnership with Volvo Cars and look forward to the company’s ongoing success in South Carolina.”

On the Dash:

Volvo Cars plans to expand production at its $1.3 billion factory in Ridgeville, South Carolina, shifting assembly of its popular XC60 SUV from Sweden to the U.S. in response to new tariffs under President Donald Trump’s trade policy.

The Swedish automaker said the move will help offset a 15% levy on imported vehicles that replaced a previous 2.5% duty. Producing the XC60 domestically enables Volvo to avoid the higher tariff while also allowing for tariff-free exports back to Europe under preliminary U.S.-EU trade terms.

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Volvo’s Ridgeville facility, designed to produce 150,000 vehicles annually, currently operates at approximately 20% capacity, employing roughly 2,000 employees on a single shift. The company originally pledged to create 4,000 jobs at the plant, a target it now expects to reach by 2030 as additional production lines are added.

The XC60, offered as both a gas-electric hybrid and a plug-in hybrid, has recorded more than 27,000 U.S. sales this year, representing a nearly 20% increase over the same period last year. Volvo executives emphasized that American buyers continue to show strong interest in hybrids, as many are reluctant to entirely abandon gas-powered vehicles.

At the same time, the company has emphasized that long-term growth will stem from EVs, warning that manufacturers who fail to make the transition may struggle to remain competitive.

In Ridgeville, Volvo already builds the $81,000 EX90 electric SUV, though only 2,500 units have sold in the U.S. this year, placing it sixth among the brand’s seven models. A refreshed EX90 debuting next year will include faster charging, adding more than 150 miles of range in 10 minutes, along with new safety and driver-assist features. Volvo also plans to launch a next-generation hybrid, designed explicitly for U.S. buyers, before 2030.

By that year, the company aims for at least 90% of its U.S. fleet to be “electrified,” a category that includes hybrids as well as fully electric vehicles. Volvo, which holds just 1% of the U.S. auto market, generates 20% of its global revenue in America.

Executives also noted that producing vehicles in South Carolina strengthens Volvo’s industrial presence in the U.S. while easing the impact of Trump’s tariffs on imported models and parts.