Volvo announced it will start building the XC60 SUV right here in America. It’s one of Volvo’s hottest commodities, comprising 33% of all sales in the U.S. It recently overtook the classic 240 as the best-selling Volvo ever. (It must be the windshield wipers.) Volvo already builds the XC60 in China and Malaysia for local markets, so it makes sense to do the same thing here.
It’s likely no coincidence that this news comes hot on the heels of a $1.2 billion hit due, in part, to tariffs on imported vehicles. The primary XC60 factory is in Torslanda, Sweden. The latest in the revolving door of tariffs is a 30% tariff on auto imports from the European Union, of which Sweden is a part, starting August 1. This is bad news for Volvo’s best-selling model, especially after Volvo’s operating profit dropped 60% in the first quarter of 2025.
Starting in late 2026, Volvo will start building the XC60 at its factory in Ridgeville, South Carolina, just outside Charleston. The plant also builds the EX90, as well as Polestar 3 SUVs.
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