Volvo XC60 Production Moving to US Amid Market and Tariff Pressures

Volvo confirms XC60 assembly in South Carolina from 2026, responding to strong US demand and anticipated tariff changes on European imports.

Volvo Cars has announced plans to begin producing its top-selling XC60 SUV at its Ridgeville plant in South Carolina, with production scheduled to start in late 2026. The XC60 will become the third model manufactured at the site, alongside the fully electric EX90 and Polestar 3.

The XC60 holds strategic importance for Volvo. It remains the brand’s global bestseller and the most popular Volvo model in the United States. In the first half of 2025 alone, U.S. sales of the XC60 rose by nearly 23%, and the model recently surpassed the iconic 240 wagon to become the best-selling Volvo of all time. More than 2.7 million XC60s are now on roads around the world.

American customers have embraced the XC60 for its blend of Scandinavian design, advanced safety features, and diverse powertrain offerings. Remarkably, about 25% of all XC60s sold in the U.S. are plug-in hybrids. This makes the model a key gateway for customers transitioning toward electrification. In Germany, the XC60 PHEV also ranks as a segment leader, with over 13,000 units registered in 2024 alone.

Bringing XC60 production to South Carolina aligns with Volvo’s global strategy of “building where we sell.” It also appears to follow Volvo’s earlier decision, reported in March, to shift production in response to potential increases in U.S. import tariffs on European-made cars.

Since opening in 2018, the Ridgeville plant has become a cornerstone of Volvo’s U.S. operations. The company has invested $1.3 billion in the facility over the past decade, upgrading its paint and body shops and establishing a battery pack assembly line. Currently employing around 2,500 people, Volvo aims to expand the workforce to 4,000 despite recent reductions of about 5%.

Company leaders emphasize that local production of the XC60 will not only strengthen Volvo’s position in the U.S. market but also support American jobs and bring the beloved model closer to its largest customer base. It remains unclear whether Ridgeville-built XC60s will be exported to other markets.

As Volvo advances toward its goal of becoming a fully electric carmaker, the XC60—particularly in its plug-in hybrid form—plays a pivotal role in bridging today’s customer needs with the company’s electrified future.