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Volvo executives say the U.S. has been difficult for the company to make profitable, amid tariff exposure and slower electric-vehicle adoption than in some other markets. Volvo says it plans to localize more production and offer vehicles with electric, plug-in hybrid and hybrid powertrains, while delays to the EX60 could leave U.S. buyers waiting longer.
Volvo says it is struggling to find profitability in the U.S., where tariffs, slower EV adoption and shifts in consumer demand have complicated its plans. Executives said the company intends to localize more production and offer a wider mix of powertrains to rebuild its position in one of the world’s major auto markets.
Chief Commercial Officer Erik Severinson described the U.S. as a difficult market for profitability during Volvo’s third-quarter earnings call, according to InsideEVs. Severinson also said U.S. consumer sentiment was at a 50-year low. That was an executive’s characterization of sentiment, not a company sales figure or an independently detailed measure in the source material.
Chief Executive Hakan Samuelsson said Volvo should have anticipated the possibility of tariffs and the need to build more locally. The company is now working to address that exposure. Volvo’s South Carolina plant, which the report says is operating at 20% capacity while building the EX90, is expected to add the XC60 and a second new vehicle with multiple powertrain options before the end of the decade.
Samuelsson said the future model should be available as an all-electric, plug-in or hybrid vehicle, reflecting the slower pace of U.S. electrification compared with other parts of the world, a shift also shaping Toyota’s electrified-vehicle plans. Meanwhile, the report says production challenges for the EX60 and priority for European demand mean U.S. customers could wait longer than originally expected for the electric SUV.
Volvo’s U.S. Strategy Faces a Reset
The company’s plans matter because they point to a shift from relying heavily on battery-electric vehicles toward a more flexible lineup shaped around U.S. demand. If Volvo can build more vehicles in the country and offer several powertrain choices, it may reduce tariff exposure and reach customers who are not ready to switch to a fully electric car.
But the proposed changes are not proof that profitability or sales will recover. Low use of the South Carolina plant, as described in the report, signals a gap between existing capacity and current output. Delayed access to the EX60 could also limit Volvo’s ability to compete in the electric SUV segment in the U.S. while other markets receive the model sooner.
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Tariffs and EV Demand Shape the Plan
Volvo’s U.S. difficulties come as automakers face changes in trade conditions and uneven demand for electric vehicles across markets. The source report says tariffs were an area where Samuelsson believes Volvo should have prepared better. It does not specify the tariff rates, their precise effect on vehicle costs or which models are most affected.
Volvo had expected new electric vehicles, including the EX60, to help revive its U.S. business. The report also says the company withdrew the EX30 and EX40 from the U.S. market, describing them as potential high-volume battery-electric models. The source links the move to a changing American market but does not provide sales figures or a detailed account of the decision.
“U.S. has proven to be a difficult market to find profitability.”
— Erik Severinson, Volvo chief commercial officer, as quoted by InsideEVs
Costs, Timing and Demand Remain Open
Volvo has not provided, in the source material, a breakdown of U.S. losses, the financial effect of tariffs or a timeline for when localization could improve profitability. The report also does not give a firm U.S. launch date for the EX60 or quantify how much its production challenge will delay deliveries.
It remains unclear whether the South Carolina plant will reach higher utilization, when the additional multi-powertrain vehicle will enter production, and how many U.S. customers will choose electric, plug-in hybrid or hybrid models. Severinson’s comment about sentiment is not accompanied by the survey details needed to assess how it was measured.
Watch for U.S. Production Plans
The next indicators will be Volvo’s more specific plans for local production, the timing of the new South Carolina model and any update on EX60 availability for U.S. buyers. Future earnings reports may also show whether output at the plant and the company’s U.S. financial performance improve.
For now, Volvo’s stated direction is clear—more localization and multiple powertrains—but the company has not supplied results showing that the approach has reversed its U.S. difficulties.
Key Questions
What did Volvo say about its U.S. business?
Volvo Chief Commercial Officer Erik Severinson said the U.S. has been difficult for the company to make profitable. CEO Hakan Samuelsson pointed to tariffs and slower electrification as challenges.
How does Volvo plan to respond?
The company says it intends to localize more production and offer a future vehicle with all-electric, plug-in and hybrid options. Volvo has not yet detailed the full production schedule or the financial effect of those plans.
Will U.S. buyers have to wait longer for the EX60?
According to InsideEVs, manufacturing challenges and prioritization of European demand mean U.S. buyers may wait longer than originally expected. The source does not give a revised U.S. delivery date.
How is Volvo’s South Carolina plant being used?
The report says the factory is operating at 20% capacity while building the EX90, with XC60 production planned and a second new, multi-powertrain vehicle expected before the end of the decade.
Source: insideevs.com
