Volvo to build new hybrid car to meet US demand, avoid tariffs

Volvo Cars said Tuesday it would expand an existing factory in South Carolina to produce a hybrid vehicle by the end of the decade, as the Swedish carmaker seeks to cater to American tastes and avoid tariffs.

- JACK EWING

A Volvo plant in Ridgeville, South Carolina, where the Swedish automaker will add production of a fourth vehicle.

(REUTERS)

Volvo and its sister company, Polestar, currently produce two electric vehicles at the plant, in Ridgeville, near Charleston. Volvo had previously announced plans to begin producing a third vehicle at the factory next year, a midsize sport utility vehicle available in hybrid and electric versions.

The fourth vehicle announced Tuesday will be a newly designed hybrid, reflecting the popularity of that technology in the United States.

The car is part of the company’s plans to increase sales in the United States 60% in the next five years, from about 125,000 vehicles last year. Volvo has not yet shown a prototype of the car or disclosed further details.