Volvo Cars strengthens US growth with Ridgeville plant

Volvo Cars to expand Ridgeville plant, adding XC60 by 2026 and new hybrid before 2030, reinforcing US market strategy and boosting local production capacity.

Volvo Cars is reinforcing its presence in the United States with fresh investment into its South Carolina plant in Ridgeville. Nearly a decade after breaking ground, the facility has already absorbed USD 1.3 billion and is now preparing to reach full utilization. With an annual capacity of 150,000 vehicles, the plant is still operating below its potential but remains central to the company’s long-term strategy.

At present, Ridgeville builds the all-electric Volvo EX90 and the Polestar 3. From late 2026, the XC60 — Volvo’s best-selling SUV in the U.S., whose sales rose by almost 20 percent in the first eight months of 2025 — will join the production line. Looking further ahead, a next-generation hybrid tailored specifically to American customers is set to arrive before 2030.

The decision to expand local production reflects broader industry dynamics. Rising U.S. tariffs have pushed Volvo, like many competitors, to follow the principle of “build where you sell.” BMW is investing heavily in its Spartanburg operations and a new battery facility in Woodruff, Mercedes-Benz produces EQS and EQE SUVs in Alabama alongside a battery plant in Bibb County, while Tesla is scaling operations in Texas, albeit with occasional stoppages.

For South Carolina, Volvo’s project brings jobs and sustained investment. Estimates for the current workforce range between 1,500 and 2,500 employees, while the long-term target remains close to 4,000. Still, challenges exist: in 2025 the company announced around 125 job cuts as part of restructuring efforts.

Amid record financial results in 2024 and the celebration of 70 years in the U.S., Volvo underscores the importance of Ridgeville within its global growth plan. While Europe and China continue to anchor production, South Carolina embodies the shift toward regionalization, aligning product portfolios with local demand and balancing electrification with hybrid technology.