Volvo Cars may move some production to the US over tariffs

Volvo Cars may move production of some of its models to the U.S. depending on tariffs, but aims to stick to a plan to export its European-made EX30 SUV model to the United States later this year, the company's CEO said on Wednesday.

Volvo Cars last year moved production of its EX30 electric vehicles from China to Europe to avoid European Union tariffs.

The expectation President Donald Trump's return to the White House will mean more tariffs could require further adaptation.

Production of the SUV in Europe is set to begin this quarter and Volvo's plan is to increase production in the coming months to serve both the European and U.S. markets in the second half of 2025, CEO Jim Rowan told Reuters.

Exports of cars from Europe to the U.S. are only subject to a 2.5% tariff for now, but that is likely to change.

"It's looking like that number is going to go up... if it's 10% each way, we can cope with that, but if it goes to 25% it's a hell of a lot more difficult from a profit perspective," Rowan said.

Volvo Cars has factory facilities in place that would allow it to move more of its production to the U.S., he added.

"We have lots of options... we just need to make a final decision on which models and which platforms we would move," Rowan said.

"We'd have to wait and see the tariff quotes and then that would help us make that decision."

The Swedish company, majority owned by China's Geely, on Wednesday presented a new fully electric sedan, ES90, its sixth electric car, as it seeks to replace most combustion engine cars in its line-up with fully electric vehicles by 2030.

The car, with a planned battery range of over 700 km (435 miles) will be built at Volvo Cars' manufacturing plant in the Chinese city of Chengdu, and the company sees China as its likely main market.