Volvo’s Major Expansion Plans for South Carolina Factory
▼ Summary
– Volvo is restructuring with a goal to become fully electric by 2040, which has previously involved layoffs to ensure business continuity.
– The company is focusing on its underutilized North American factory in Ridgeville, South Carolina, which has an annual capacity of 150,000 vehicles.
– The plant currently builds the large electric EX90 SUV and the Polestar 3, having previously produced the S60 sedan until summer 2023.
– Volvo plans to expand production at the facility by adding the next midsize XC60 model and a new, unnamed hybrid model before 2030.
– This investment reinforces Volvo’s long-term commitment to the US market, where it has operated for 70 years and sold over 5 million cars.
Volvo is making significant moves to solidify its future in the American automotive market, with a major expansion planned for its manufacturing facility in Ridgeville, South Carolina. This strategic push is a key part of the company’s broader ambition to transition to a fully electric lineup by 2040, ensuring its long-term viability. While the year began with workforce reductions as part of a global restructuring, the automaker is now announcing substantial new investments and production allocations for its US plant, signaling a strong commitment to its operations there.
Since opening the Ridgeville factory in 2017, Volvo’s production focus has shifted considerably. The facility initially produced the S60 sedan, a curious choice given the American market’s pronounced shift toward crossovers and SUVs at that time. Production of the S60 concluded last summer, and the plant now manufactures the large all-electric EX90 SUV and its platform sibling, the Polestar 3. Despite this, the plant operates well below its total annual capacity of 150,000 vehicles.
A crucial step in optimizing the facility’s output was announced this past July, when Volvo confirmed that the next-generation midsize XC60 would be built in South Carolina. This decision is considered a savvy one, not only because the XC60 is a core model for US sales but also as a strategic measure to navigate potential import tariffs. The latest development adds another layer to this expansion. The automaker has revealed plans to introduce a new, currently unnamed hybrid model to the Ridgeville production line before the year 2030.
Håkan Samuelsson, Volvo’s chief executive, emphasized the importance of these investments. “Our investment plans once again reinforce our long-term commitment to the US market and our manufacturing operations in South Carolina,” he stated. Samuelsson also highlighted the company’s 70-year history in the United States, noting that Volvo has sold over five million cars there and intends to build on that legacy for many years to come.
(Source: Ars Technica)