Goals For 60% Development By 2030
Volvo has been a fixture in the US for many years, however extra due to the distinctiveness of its automobiles and its obsession with security than due to excessive gross sales numbers. The automaker’s new U.S. boss hopes to vary that, or no less than, to convey Volvo according to different luxurious manufacturers.
After 4 months as Volvo Vehicles Americas President, Luis Rezende introduced at a media occasion this week a aim of boosting Volvo’s U.S. gross sales from the 125,243 autos it offered final yr to 200,000 by 2030. That’s a rise of about 60%, and would match the present gross sales quantity of Audi within the U.S., Automotive Information famous.
However How Will It Get There?
Rezende believes Volvo can obtain that bold progress with some constructing blocks which are already in place, together with elevated U.S. manufacturing and a crossover-heavy lineup, in addition to a state-by state strategy to provide, incentives and advertising and marketing, in response to Automotive Information.
“We don’t see the U.S. as one nation; we see the U.S. as 50 completely different nations,” Rezende stated in an interview with the commerce publication. That technique is but to be absolutely applied, however Volvo has already made strikes in different areas.
To counter the Trump Administration’s new 15% tariff, Volvo plans to transfer extra manufacturing to its plant close to Charleston, South Carolina. That plant at present builds the Volvo EX90 and Polestar 3 SUVs, however will add the higher-volume Volvo XC60 in 2026 and, in response to Automotive Information, a next-generation XC90 in October 2028.
Product Adjustments
Volvo can also be trimming its lineup of the wagons that after outlined the model, in addition to sedans, in favor of extra standard crossovers. With the V90 Cross Nation leaving manufacturing, the V60 Cross Nation is the one non-crossover in Volvo’s U.S. lineup. However that’s consistent with shopper preferences, Rezende emphasised.
“The shoppers would be the ones who determine what they need to purchase from us,” he stated. “Not us telling them what they should purchase.”
Earlier than it started pruning its lineup of wagons and sedans, Volvo already indicated that it could again away from a plan to go all-electric by 2030, one which was by no means standard with its U.S. sellers. EVs are nonetheless a giant a part of the plan, however so are plug-in hybrids, one in all which would possibly even be a minivan.
Robust Headwinds
A lot of this plan, nonetheless, merely serves to counteract the dangerous hand that Volvo has been dealt. The Trump tariffs and the discontinuation of the $7,500 federal EV tax credit score are going to make life significantly onerous for a European automaker with an EV-heavy lineup for the following few years. Including U.S. manufacturing and extra fashions with gasoline engines could possibly be essential instruments to keep up market share in that surroundings, however might not be sufficient to get forward.
Sellers interviewed by Automotive Information have been additionally skeptical about how a lot further demand there’ll really be for Volvo within the U.S. One famous that it’s nonetheless seen by many as a “yuppie, New England, liberal automotive model,” and that’s borne out by regionally skewed gross sales information. Volvo has 5.5% of the posh automotive market nationwide, however simply 2.5%-3% in California and Texas—two of the largest car-buying states. So Volvo both has room to develop, or its about to slam into a requirement ceiling.
Concerning the creator
Contributing Author, Autoblog
Stephen Edelstein is an automotive journalist protecting the present state of the trade. His work is constructed on a deep information of automotive know-how and engineering, model historical past, and the newest developments in motorsports. He leverages this broad context in his writing for publications similar to Digital Traits, Ars Technica, and Motor Authority, aiming to make advanced matters accessible to all readers.
