Volvo is making a significant move by bringing the production of its highly popular XC60 vehicle to the United States. This strategic decision underscores the Swedish automaker's commitment to the American market and its long-term vision for localized manufacturing. The Ridgeville, South Carolina facility, already a hub for electric vehicle assembly, will soon add the XC60 to its production lines, further cementing its role as a vital part of Volvo's global operations. This expansion reflects the growing demand for Volvo's diverse vehicle lineup and its proactive approach to serving its customer base with both conventional and electrified options.

Volvo Initiates XC60 Production in South Carolina Facility

In a notable development for the automotive industry, Volvo has officially announced plans to commence the manufacturing of its leading global seller, the XC60, at its state-of-the-art facility situated in Ridgeville, South Carolina. This plant, strategically positioned just outside the vibrant city of Charleston, represents Volvo's inaugural manufacturing presence in the United States. Over the past decade, Volvo has channeled approximately $1.3 billion into this facility, transforming it into a cutting-edge, forward-looking production hub. It currently serves as the assembly point for Volvo's advanced three-row electric SUV, the EX90, as well as the Polestar 3. The integration of the XC60, available in both mild hybrid and plug-in hybrid electric (PHEV) configurations, is poised to broaden Volvo's appeal, ensuring a comprehensive offering for every segment of the American consumer base. The XC60 has consistently held the title of Volvo's global top-selling vehicle for several years. Furthermore, it has already established itself as the brand's most sought-after model within the United States, constituting over 33% of Volvo's total sales. A notable 25% of buyers have gravitated towards the PHEV variant, positioning the XC60 as the fourth best-selling luxury PHEV across the US. According to remarks from Luis Rezende, President of Volvo Cars Americas, the enthusiasm for the XC60 is widespread globally and particularly strong in the US. He expressed immense pride in the forthcoming ability to provide American families with their preferred XC60, meticulously assembled by American automotive professionals on home soil. In June of the current year, the XC60 once again emerged as Volvo's premier seller, with an impressive sales figure exceeding 20,700 units, marking an 8% increase compared to June 2024. The first half of the year witnessed a substantial surge in XC60 sales in the US, climbing by nearly 23%. Following the announcement of a 4.4% increase in US sales during the second quarter, Rezende emphasized that this quarter is merely the commencement of an exciting journey, affirming unwavering confidence in the trajectory ahead and a steadfast commitment to accelerating the brand's electrification endeavors. The XC60 recently achieved a historic milestone, surpassing the 240 wagon to become Volvo's all-time best-selling vehicle, with over 2.7 million units currently in operation worldwide. The production of the XC60 in the US is slated to commence in late 2026, signifying another pivotal achievement for the company. Volvo has also confirmed its continued commitment to manufacturing the EX90 at the same facility, specifically targeting consumers seeking enhanced space or a fully electric driving experience.

This strategic move by Volvo to localize XC60 production in the US is a powerful testament to the evolving dynamics of the global automotive landscape. It highlights a growing trend among international manufacturers to establish or expand production capabilities within key markets, driven by factors such as reduced logistical costs, improved supply chain resilience, and the ability to more quickly respond to local consumer preferences. For consumers, this could translate into more readily available vehicles, potentially shorter delivery times, and a deeper sense of connection with a brand that invests directly in the local economy. From a broader economic perspective, the creation of manufacturing jobs and the associated ripple effects throughout the supply chain are undeniably positive. This decision also underscores Volvo's confidence in the American workforce and the quality of manufacturing that can be achieved domestically. As the automotive industry continues its rapid shift towards electrification, localized production of both traditional and electrified models becomes even more critical for agility and market responsiveness. This development serves as a compelling reminder that global collaboration and localized investment are key drivers of progress and prosperity in an interconnected world.

The automotive industry is in a constant state of flux, particularly concerning the transition to electric vehicles. Recent developments paint a mixed picture, with some manufacturers adjusting their strategies in response to market realities. While the global electric and plug-in hybrid vehicle segment demonstrates sustained growth, the North American landscape presents unique challenges, influencing production decisions and market trends for both new and used vehicles.

Automotive Industry Shifts: From Electric Ambitions to Gasoline Realities

In a significant strategic pivot, General Motors has announced plans to retool its Orion Assembly plant in Orion Township, Michigan, for the production of gasoline-powered trucks, including the Cadillac Escalade and Chevrolet Silverado/GMC Sierra light-duty pickups. This decision, confirmed on July 15, 2025, by GM spokeswoman Tara Kuhnen to the Detroit Free Press, marks a notable departure from the company's previous intention to invest $4 billion into the facility for electric pickup truck manufacturing starting in 2026. The plant, which previously assembled the Chevrolet Bolt EUV, was earmarked to produce electric versions of the Silverado and Sierra. This change raises questions regarding the $480 million in state grants Michigan provided for EV production, the future of which remains uncertain.

Simultaneously, the global adoption of plug-in vehicles continues its upward trajectory. A study released by Rho Motion reveals a remarkable 24% year-over-year increase in global EV and PHEV sales, with a 7% cumulative growth in just the past month. This surge is particularly evident in regions like Latin America, where the availability of more affordable Chinese EV models, such as the BYD Seagull (known as Dolphin Mini in some markets), priced around $20,000, is driving consumer uptake. In stark contrast, the North American EV market, specifically in the United States and Canada, shows signs of stagnation. The U.S. market has seen a modest 6% growth, while Canada has experienced a 23% decline. A critical factor contributing to this slowdown is the impending expiration of U.S. federal EV tax credits on September 30, 2025, following the signing of the 'Big Beautiful Bill' on July 4, 2025, which withdraws all IRA consumer tax credits. This policy change is anticipated to lead to a sharp decline in U.S. EV sales in the fourth quarter of the year, as consumers rush to capitalize on remaining incentives.

Furthermore, the used electric vehicle market in the U.S. is witnessing a consistent decline in prices, dropping approximately 5% compared to the previous year, according to a recent iSeeCars study. This trend positions used EVs as a relative bargain compared to their combustion-engine counterparts, whose prices have seen an equivalent increase. However, this price reduction also reflects a slowdown in the influx of lightly-used EVs into the secondhand market, with growth rates dropping significantly from 60-97% in prior years to just 14.2% in the last twelve months. Industry experts like Karl Brauer from iSeeCars suggest that this slowdown, coupled with the end of federal incentives, could lead to a contraction in the used EV market's share growth in the coming year. Nevertheless, the anticipated boom in EV lease returns from recent years may still provide a steady supply of affordable used electric cars, potentially sustaining attractive deals for consumers.

The current landscape of the automotive industry underscores the intricate interplay of technological advancements, government policies, and consumer behavior. While the global electric vehicle movement pushes forward with considerable momentum, individual markets face distinct challenges and opportunities. The United States, in particular, finds itself at a crossroads as it grapples with shifting manufacturing priorities and the imminent conclusion of significant EV incentives. This dynamic environment necessitates a keen understanding of market signals and adaptive strategies from all stakeholders to navigate the evolving demands of the twenty-first-century mobility sector.