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Volvo to Build Next‑Gen Hybrid in South Carolina by 2030, Plans U.S.-Focused EREV

The move reflects a push to localize output to safeguard profitability under U.S. import duties.

Overview

  • Volvo confirmed it will add a new next‑generation hybrid model to its Ridgeville, South Carolina plant before 2030, designed specifically for U.S. buyers, with name, specs, and volumes still undisclosed.
  • The Ridgeville factory has capacity for about 150,000 vehicles a year but currently builds only the Volvo EX90 and Polestar 3, prompting Volvo to add models to raise utilization.
  • Volvo will start assembling the XC60 in South Carolina from late 2026, expanding the site’s mix with a core model that will be offered with hybrid powertrains.
  • Company leaders said U.S. tariffs accelerated the decision to expand local production, with EU-built cars still facing a 27.5% levy until a tentative 15% deal takes effect and China-made cars subject to a 100% duty.
  • Volvo said it is developing an extended‑range electric vehicle for the U.S. market to be built in Ridgeville by the end of the decade, describing it as a “second generation of hybrids,” though technical details remain unannounced.