Volvo Cars Plans Continued Investment in South Carolina Plant
Volvo Cars will continue to invest in its US car plant in Ridgeville outside Charleston, South Carolina, to reach full utilisation of the factory in the coming years.
Volvo Cars has already invested USD 1.3 billion in the plant over the last decade to prepare it for the future. Through these investments, Volvo Cars aims to achieve both volume and financial growth, while also utilising the plant’s capacity. The Ridgeville plant currently has an installed production capacity of 150,000 cars per year.
Together with its factories in Europe and China, the South Carolina facility plays a crucial role in Volvo Cars’ future growth plans and its increased focus on tailoring products to regional needs. It currently produces the fully electric Volvo EX90 SUV, as well as the Polestar 3, in South Carolina.
A first step towards better capacity utilisation was announced earlier this year, when Volvo Cars said it would introduce its best-selling XC60 mid-size SUV to the South Carolina production line starting from late 2026. The company has sold over 27,000 XC60s in the US in the first eight months of 2025, an increase of almost 20 per cent compared to the same period in 2024.
Volvo Cars broke ground on its US manufacturing plant in 2015, nearly a decade ago. It is a high-capacity plant with advanced capabilities in terms of multiple platforms, technologies and models.
Before 2030, Volvo Cars plans to add a new, next-generation hybrid model to the production line of the Ridgeville plant. This new model is designed to meet the specific demands of the US market, in line with Volvo Cars’ increased focus on ensuring each region has the products it needs to meet customer demands.
The company’s focus on regionalisation includes a more focused approach for each of its sales regions in terms of product, technology, manufacturing and commercial, allowing the company to better meet the needs of its customers.
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