U.S. Assembly Boosts Volvo XC60's Competitive Edge
Volvo is moving XC60 production to its U.S. facility in Ridgeville, South Carolina. This marks a clear signal to the industry: Volvo is serious about U.S. manufacturing and domestic market share. Production is expected to start in late 2026.
The XC60 is Volvo’s top-selling model both globally and in the U.S. In the first half of 2025, U.S. XC60 sales grew by nearly 23%. Currently, this model accounts for over 33% of Volvo’s U.S. sales, and a quarter of those are plug-in hybrids.
Why Volvo Chose the XC60
The XC60 is a mid-size luxury SUV that aligns with U.S. preferences. It offers:
- Hybrid options: mild-hybrid and plug-in hybrid variants.
- Spacious interior: fits the needs of American families.
- Reputation for safety: a Volvo staple.
- Strong design: Scandinavian simplicity that appeals to premium buyers.
Volvo has already sold over 2.7 million XC60s globally, surpassing the 240 wagon to become the brand's all-time best-seller.
Plug-in Hybrid Popularity Accelerates Electrification Push
The XC60 ranks as the fourth-best-selling luxury plug-in hybrid in the U.S. That matters. Plug-in hybrids often serve as a transition technology for consumers hesitant to go fully electric.
Here’s what the shift looks like in numbers:
| Metric | Value |
|---|---|
| 2025 U.S. XC60 Sales Growth | +23% (First half YoY) |
| Share of Volvo U.S. Sales | 33% (XC60) |
| Share of XC60s Sold as Plug-In Hybrids | 25% |
| Global XC60 Units Sold | 2.7 million+ |
Local Production Means Faster Turnaround and Lower Costs
Producing the XC60 in South Carolina reduces logistics costs and improves delivery timelines. It also helps Volvo meet changing tariffs and “Made in USA” incentives.
Key facility investments:
- $1.3 billion USD invested since 2015.
- Expanded body and paint shops for increased capacity.
- State-of-the-art battery pack line for electrified variants.
The same site currently produces:
- The fully electric Volvo EX90 (7-seater SUV).
- The Polestar 3 (premium EV SUV).
The Ridgeville plant supports multiple platforms, giving Volvo flexibility as electrification expands.
Economic Impact: South Carolina Wins Big
Localizing XC60 production supports the U.S. economy while reinforcing Volvo’s long-term commitment to American buyers.
Benefits include:
- American manufacturing jobs (secured and expanded).
- Stronger supply chains.
- A vote of confidence in South Carolina’s industrial capacity.
Volvo executives praised the state’s entrepreneurial mindset and support from Governor Henry McMaster.
Timeline: What to Expect Next
- Now through 2026: Facility adjustments and hiring ramp up.
- Late 2026: U.S. production of XC60 begins.
- Post-2026: U.S.-assembled XC60s reach dealerships.
Why This Strategy Works for Volvo
Building cars close to the buyer isn't new. But for Volvo, it’s now essential. The U.S. is Volvo’s second-largest market, and American buyers are driving hybrid growth.
What the XC60 move achieves:
- Strengthens Volvo’s U.S. market share.
- Expands electrified powertrain availability.
- Reduces exposure to foreign production risks.
- Helps meet domestic sourcing regulations under recent legislation.
