Why Is Volvo Building the XC60 in South Carolina?
Volvo’s decision to start building the XC60 at its Ridgeville, South Carolina plant is more than just a manufacturing update—it’s a strategic move with ripple effects for American drivers, autoworkers, and the brand itself. The XC60, which has become Volvo’s second best-selling vehicle in the US, will roll off American assembly lines starting in late 2026. So, why the shift? It boils down to two main factors: tariffs and market demand.
By producing the XC60 stateside, Volvo sidesteps hefty import tariffs that have complicated the auto industry in recent years. This isn’t just about saving a few bucks on shipping—tariffs can add thousands to the sticker price, which ultimately lands on the buyer’s shoulders. Building locally means Volvo can keep the XC60 competitively priced, a move that’s especially important as the crossover segment gets more crowded and cutthroat.
But there’s more to it. Volvo’s US sales have been on a tear, with the XC60 accounting for over 33% of its American sales—21,907 units through June, up nearly 23% from last year. That’s a serious jump, and it’s outpacing the larger XC90 by more than 2,000 units. Clearly, American buyers have a soft spot for this Swedish crossover, and Volvo is doubling down on that momentum.
What Does This Mean for American Jobs and the Local Economy?
Let’s talk jobs. Volvo’s Ridgeville plant, which currently produces the EX90 and Polestar 3, hasn’t exactly been running at full tilt. Adding the XC60 to its production line is a shot in the arm for local employment. Volvo Cars Americas President Luis Rezende put it plainly: American families will soon be able to buy an XC60 built by American autoworkers. That’s not just PR spin—it’s a real boost for South Carolina’s manufacturing sector.
Industry analysts agree that automakers who invest in US-based production tend to see stronger brand loyalty and community support. According to the Alliance for Automotive Innovation, the auto industry supports nearly 10 million American jobs, directly and indirectly. Volvo’s expansion is a small but meaningful part of that ecosystem.
Will the US-Built XC60 Be Different From the European Version?
Volvo hasn’t spilled all the beans on technical details, but here’s what’s confirmed: the South Carolina plant will produce both mild-hybrid and plug-in hybrid versions of the XC60. That’s in line with Volvo’s broader push toward electrification and sustainability. Expect the US-built models to match their European siblings in terms of safety features, tech, and that signature Scandinavian design.
There’s also a practical upside for buyers. Local production can mean faster delivery times, fewer supply chain hiccups, and potentially even region-specific tweaks. For example, US-market Volvos sometimes get different infotainment options or climate packages tailored to American tastes and weather. It’s not a stretch to imagine the Ridgeville-built XC60s will be fine-tuned for what US drivers want most.
How Does This Move Fit Into Volvo’s Long-Term Strategy?
Volvo’s CEO Håkan Samuelsson summed it up: build where you sell. It’s a philosophy that’s gaining traction across the industry, especially as global supply chains get more complicated. The company is celebrating its 70th anniversary in the US and has sold over five million cars here—a legacy that’s hard to ignore.
There’s also speculation that the XC90, Volvo’s larger SUV, could join the production line in South Carolina as early as 2028. If that happens, Ridgeville could become a major hub for Volvo’s North American operations. Some industry watchers are even whispering about the possibility of the ES90, a rumored electric sedan, joining the mix down the road.
What’s the Real Impact for Buyers?
For American shoppers, this move could mean more than just a patriotic badge on the window sticker. With local production, the XC60 is likely to stay more affordable, even as tariffs and global logistics costs fluctuate. Plus, there’s a certain peace of mind that comes from knowing your car was built closer to home, with parts and service more readily available.
And let’s not forget the environmental angle. Shipping cars across oceans racks up a hefty carbon footprint. By building in the US for the US market, Volvo is trimming some of that excess—another small step toward the company’s ambitious climate goals.
What’s Next for Volvo’s US Operations?
While the focus is on the XC60 for now, the Ridgeville plant’s future looks busy. If the XC90 and potentially other models join the lineup, Volvo’s American footprint could grow significantly. This could mean more jobs, more investment in local infrastructure, and a stronger connection between the brand and US consumers.
The big takeaway? Volvo’s US production strategy isn’t about perfection—it’s about smarter adjustments. Start with one change this week, and you’ll likely spot the difference by month’s end. For Volvo, that change is building the XC60 in South Carolina. For buyers, it could mean a better, more accessible crossover—built just down the road.