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Volvo Scales Back U.S. Lineup to SUVs and V60, Plans XC60 Hybrid Production

High import duties on European and Chinese vehicles have slashed profit margins, prompting Volvo to suspend sedan and wagon sales in favor of higher-margin SUVs

The Volvo logo is seen at the New York Auto Show in the Manhattan borough of New York City, New York, U.S., March 28, 2018. REUTERS/Shannon Stapleton/ File Photo
A logo of Volvo is seen inside a car dealer in Nijmegen, Netherlands February 26, 2025. REUTERS/Piroschka van de Wouw/ File Photo
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High costs for EV development and US tariffs are hurting Volvo's bottom line

Overview

  • Volvo will offer only about half of its 13-model global range in the U.S., limiting new sales to SUVs and the V60 station wagon.
  • Sedan shipments of the S60 and China-made S90 have been halted, and the ES90 cannot be sold profitably under current tariffs.
  • The European-made EX40 electric model is temporarily paused, while only the dual-motor EX30 at $46,195 is available instead of the planned $35,000 single-motor version.
  • Local assembly has not shielded the EX90 from weak demand, with fewer than 2,000 units sold in the first half of 2025 against a 150,000-unit annual capacity.
  • Volvo will begin building its best-selling XC60 as a mild and plug-in hybrid at its South Carolina plant in late 2026 to offset tariff pressures and boost margins.