Overview

• Volvo Cars has announced the layoff of 125 employees, representing 5% of its workforce at the Charleston, South Carolina plant.
• The decision comes as a response to economic challenges stemming from new 25% U.S. tariffs on foreign vehicle imports and auto parts imposed by President Trump in April.
• The Charleston factory currently produces the EX90 electric SUV and Polestar Model 3, with most Volvo vehicles for the U.S. market still imported from Europe.
• Despite the layoffs, Volvo reaffirms its commitment to creating 4,000 jobs and increasing production capacity in South Carolina in the long term.
• The layoffs are part of Volvo's broader $1.88 billion global cost-cutting initiative aimed at addressing profit pressures and supply chain disruptions.