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Volvo may move some production to US if tariffs applied

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CEO tells Reuters surplus US capacity already exists

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Volvo keeps plan to export EX30 SUV to US this year

(Adds CEO quotes, details on U.S. production flexibility in

paragraphs 9-12)

By Marie Mannes

STOCKHOLM, March 5 (Reuters) - 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.

President Donald Trump's threats of a fresh round of tariffs

could require further adaptation.

The EX30 SUV should start production in Europe this quarter

and Volvo aims to increase production 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 enough capacity at its U.S. assembly plant to

move more of its production to the United States, he added.

"We have space, paint shops, the buildings, all that's

there." he said. "We just need to make a final decision on which

models and which platforms that we would move to the USA."

Volvo produces its SUV EX90 in its Charleston, South

Carolina plant, but also imports both hybrid and electric models

from Europe at the moment.

Rowan said Volvo could move its XC60 or XC90 models, which

are on the same platform, to the plant in Charleston, or look at

putting models using different technology there.

"We'd have to wait and see the tariff quotes and then that

would help us make that decision," Rowan said.

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.