A U.S. Plant at the Heart of the Strategy
A new hybrid vehicle, designed for the North American market and manufactured in the United States, will be added to Volvo's lineup by 2030. While details are currently unknown, the new vehicle will be assembled at the Ridgeville facility in South Carolina.
This plant is a cornerstone of Volvo's North American strategy. It already serves as the manufacturing hub for several popular models, including the Polestar 3 for the U.S. market, which helps to limit the impact of customs tariffs. The all-new EX90, a large, fully electric SUV, is also assembled here. Finally, the redesigned XC60 will be manufactured at this plant, with production set to begin in a few months.
Production is Still Limited
Since its opening, Volvo has invested more than $1.5 billion in the U.S. plant. However, production is still fairly limited. According to the 2024–2025 fiscal report, only 20,000 vehicles rolled off the assembly lines, representing about 13% of the factory's manufacturing capacity.
The theoretical production capacity of the South Carolina plant is 150,000 vehicles per year. The company hopes that the arrival of the XC60 and the new hybrid model will help to optimize production.
A Hybrid is on the Way as Sales Climb
Few details have been released about the hybrid. Volvo simply describes it as a “next-generation hybrid model” designed specifically for the United States. Analysts expect it to be an SUV because the company recently discontinued production of the S60 and S90 sedans and reduced its station wagon offerings.
This move would be logical, given the success of the XC60 in the United States, where sales have climbed in recent months. The midsize SUV sold 21,907 units in the first half of 2025, making it the best-selling vehicle in the lineup. The XC60 has also seen a resurgence in popularity in Quebec, with 621 units sold in the first two quarters of the year, an increase of nearly 17% compared to the same period in 2024.
For now, Volvo has no plans to bring production of other models back to South Carolina. The EX30, for example, will continue to be assembled in Belgium for the Canadian market.