Volvo to change production plans due to US-China trade war

Earlier this year, due to rising tensions between the US and China, the two nations imposed higher import duties on cars made in the other country. Now, according to a media report, Volvo is changing which car is made where due to this trade war.

From 2019, Volvo will stop importing the XC60 SUV into the US from China. Similarly, fewer units of the S60 sedan that is made at the Charleston Plant in the US will be exported to China, where a 40 percent tariff is imposed US-built cars. Volvo will instead be exporting these cars to European and other markets.

Volvo, which is owned by China's Geely Group, is reported to reconsider its plans to make US the only global source for the S60 sedan. The Swedish company already makes a long wheelbase version of the car in China, which could also be utilized to make the S60 sedan.

It is also reported that the company will import only 2,500-3,000 units of the S90 sedan from China, down from the 10,000 units being imported at present. When the Charleston plant was planned in 2014, it was originally decided to make at least two different models with half of the output for the domestic market and the other half for export.

Source: Motortrend