A continued investment means a strengthened commitment to American production
In an effort to maintain an “increased focus on regional tailoring of products,” and with an ambitious target of 50% volume growth over the next five years, Volvo has announced new plans to further invest in its Ridgeville production facility—located just outside of Charleston, South Carolina—along with the development of a next-generation hybrid model explicitly designed for the American market, and a continued pursuit of 90% electrified sales by 2030. The Volvo South Carolina Plant, which the automaker has invested over USD 1.3 billion into over the past decade, aims to achieve full utilization of its capacity in the coming years.
Volvo’s continued investment in its U.S. manufacturing footprint aims to strengthen its commitment to building vehicles in the United States, rather than relying solely on imports. This strategy will likely save the brand from the headaches of constantly moving tariff goalposts and should hopefully keep costs down for buyers. Production facility expansions like these also often result in the creation of many new jobs—a massive plus for South Carolina residents. Volvo’s Charleston factory is already central for North American EV production, as it currently produces the electric Volvo EX90 and the Polestar 3, and this new investment should further assist the brand in achieving its goal of 90% electrified sales by 2030.
Volvo
Hybrids, plug-in hybrids, and full EVs
Earlier this year, Volvo announced that its popular XC60 model will be produced on its South Carolina production line starting in late 2026. This comes as the brand has sold over 27,000 XC60s in the United States throughout the first eight months of 2025—a figure up 20% compared to the same period last year. This move will hopefully lower costs for buyers in the long run. Regardless of sales figures, it will at least make production and logistics far easier to manage for the fan favorite Volvo crossover.
Additionally, Volvo has announced its plans to introduce a “new, next-generation hybrid model to the production line of the Ridgeville plant […] designed to meet the specific demands of the US market.” It’s admittedly refreshing to see that Volvo isn’t being too hasty to shift its entire lineup towards full electrification and that the legendary Swedish automaker hasn’t completely given up on internal combustion yet. It’ll be interesting to see what sort of vehicle Volvo will offer as its all-new hybrid model, although it’ll most likely be another crossover of some kind. I can hope and pray, however, that maybe, just maybe, it’ll be a new hybrid Volvo station wagon.
Volvo
Final thoughts
Volvo’s continued investment in its South Carolina production facility isn’t just about cars; it’s about the brand taking U.S. growth seriously, chasing EV leadership, and enhancing global competitiveness. By building EVs domestically, Volvo positions itself to compete directly with Tesla and German luxury rivals while tapping into the growing demand for electric vehicles in the U.S. It’s also exciting to learn that a new hybrid model is on its way from Volvo. I’m eager to get a closer look at its style, how it performs, and what its next-generation hybrid powertrain reveals about Volvo’s contemporary combustion-powered engineering ideals. Regardless, the automaker’s ongoing strategic investments in American vehicle production demonstrate that it’s gearing up for an intense fight, aiming to take on industry heavyweights and leave a lasting impression on American buyers.
