Volvo Cars has officially confirmed that it will begin producing its best-selling XC60 mid-size SUV at its U.S. plant in Ridgeville, just outside Charleston, South Carolina. The move, set to begin in late 2026, comes as the Swedish automaker looks to strengthen its position in the U.S. market while strategically sidestepping tariffs imposed by former U.S. President Donald Trump.
The decision marks a significant milestone for Volvo’s American operations, especially as the XC60 continues to dominate the brand’s sales charts. In the first half of 2025 alone, the XC60 accounted for over 33 percent of Volvo’s U.S. sales, with a 22.9 percent year-over-year increase in June and a total of 21,907 units sold that month.
A Strategic Shift for a Critical Model
“Adding the XC60 to our Charleston production line will further strengthen its position and attractiveness in the competitive U.S. market, while supporting and creating American manufacturing jobs,” said Håkan Samuelsson, CEO of Volvo Cars. “It is also in line with our ambition to build where we sell and reinforces our long-term commitment to the U.S. market.”
The Ridgeville plant, which began operations in 2018, currently assembles the fully electric EX90 flagship SUV and the Polestar 3. However, both models have struggled to gain traction in the U.S. market. By adding the XC60—a proven sales leader—Volvo hopes to invigorate production lines and better align with U.S. consumer preferences.
Luis Rezende, President of Volvo Cars Americas, echoed the sentiment: “The XC60 is the right car for this market. It offers the best of Volvo in a versatile size with the powertrain options to suit our U.S. customers. We’re proud we’ll soon be able to offer American families the XC60 they love, assembled here by American autoworkers.”
A Pillar in Volvo’s Global Portfolio
The XC60 isn’t just Volvo’s top performer in the U.S.—it’s a global powerhouse. With over 2.7 million units sold globally, it recently surpassed the iconic Volvo 240 as the brand’s all-time best-selling model. U.S. customers have long gravitated toward the XC60 for its blend of safety, luxury, and Scandinavian design.
The model will be produced in both mild hybrid and plug-in hybrid variants in Charleston. That’s a particularly strategic move, given that 25 percent of XC60s sold in the U.S. this year are plug-in hybrids—making it the fourth best-selling luxury plug-in hybrid in the country. For Volvo, it’s not just about meeting current demand, but also about accelerating its push toward electrification.
Investment in the Future
Volvo has invested $1.3 billion into the Ridgeville facility over the past decade, preparing it for high-volume, flexible production. The plant now includes a state-of-the-art battery pack assembly line and upgraded body and paint shops. These enhancements ensure the factory can handle a wide variety of platforms and powertrains.
Governor Henry McMaster and state officials have played a key role in supporting Volvo’s expansion, with South Carolina’s pro-manufacturing policies and workforce development initiatives cited as major factors in the decision.
Looking Ahead
With the addition of the XC60, Volvo is reinforcing its commitment to building vehicles closer to where they are sold—both to reduce costs and to stay agile in a turbulent global trade environment. While the fully electric EX90 will continue to target forward-looking buyers, the XC60 will serve as the brand’s volume leader and bridge to an electric future.
In a year when Volvo celebrates 70 years in the U.S. and surpasses 5 million vehicles sold stateside, the XC60’s American production marks a new chapter in the company’s legacy—and a bet that South Carolina can deliver for one of Europe’s most storied automakers.
Source: Volvo
