Sweden鈥檚 Volvo Cars, owned by China鈥檚 Geely, will increase its production of vehicles in the United States and probably produce an additional model there, following US President Donald鈥檚 Trump鈥檚 introduction of tariffs, its chief executive officer told media Thursday.
As of Thursday, cars manufactured outside the United States are subject to a 25-per cent tariff, while a tariff on spare parts is also set to gradually come into effect.
鈥榃e will have to increase the number of cars we build in the US, and surely move another model to that factory,鈥� CEO Hakan Samuelsson told Bloomberg.
Volvo Cars assembles its EX90 electric model at its plant near Ridgeville in South Carolina as well as Volvo spinoff Polestar鈥檚 Polestar 3.
The carmaker 鈥榳ill have to look closely鈥� at which model to add to its production lines, Samuelsson added.
Volvo Cars declined to provide any further details about its plans, when contacted by AFP.
Samuelsson, 74, who led the company from 2012 to 2022, once again took over Volvo Cars on April 1, following the dismissal of Jim Rowan.
The carmaker warned in February that it expected a challenging year in 2025, notably due to the threat of tariffs and the slowing pace of electrification.
Volvo Cars, which has moved towards specialising in electric vehicles, gave up last September its goal of selling only electric vehicles by 2030, and has now set its target to between 90 per cent and 100 per cent by the same year.