Volvo to boost investment in South Carolina, launch new hybrid model before 2030

Core Insights - Volvo Cars is increasing its investment in its South Carolina factory to enhance production capacity and meet U.S. market demands [3][8] - The company has invested a total of $1.3 billion in the South Carolina facility since 2015, which currently has a capacity of 150,000 vehicles per year [3] - Demand for the XC60 mid-size SUV remains strong, with over 27,000 units sold in the U.S. in the first eight months of this year, marking a nearly 20% increase from the same period in 2024 [3][4] Investment and Production Plans - The Ridgeville plant currently assembles the fully electric EX90 SUV and Polestar 3, having previously produced the S60 sedan, which saw a 92% decline in sales this year [4] - Volvo plans to start producing the XC60 in the U.S. by late 2026, which is currently manufactured in Sweden, along with a new next-generation hybrid model before 2030 [8] - The investment strategy aligns with Volvo's goal to ensure regional product availability and meet customer demands effectively [5][6] Leadership and Strategic Direction - Håkan Samuelsson, the CEO of Volvo Cars, emphasized the company's long-term commitment to the U.S. market and its manufacturing operations in South Carolina [6] - Samuelsson's return as CEO is aimed at navigating technological shifts and geopolitical complexities affecting the automotive industry [7] - The Charleston plant is considered foundational to Volvo's strategic growth plan in the U.S., with expectations to enhance local manufacturing capabilities and workforce utilization [8]