Volvo’s Next Big SUV Will Be Built in the U.S.—Here’s What We Know
The “second-generation hybrid” model also will be designed with Americans in mind.
Erik JohnsonWriterManufacturerPhotographerMotorTrend StaffPhotographerSep 26, 2025
Volvo XC60 Teaser at Charleston Assembly Plant
Volvo has confirmed that a fourth new model will be built at its assembly plant in Charleston, South Carolina. The facility already builds the Volvo EX90 and Polestar 3, and will add the company’s bestseller, the XC60, starting in late 2026.
By 2030, a new model will join their ranks, as confirmed by Volvo CEO Håkan Samuelsson. While Volvo executives wouldn’t confirm full details when MotorTrend spoke to them, Samuelsson did say, “We call it the second generation of hybrids. It will behave like an electric car with fast acceleration, but it has an onboard charger to extend the range. It’s an electric car with a backup engine.” This would indicate the vehicle will be an EREV, or extended-range EV, which uses an internal combustion engine not to drive the wheels but solely to generate power for the battery pack. EREVs can also be charged at home or via public fast-charging.
Volo Executive Roundtable Interview at Charleston Assembly Plant
Volvo executives speak at the company’s plant in Ridgeville, South Carolina. From left: Håkan Samuelsson, president and CEO; Luis Rezende, president of Americas; Francesca Gamboni, chief industrial operations officer; Erik Severinson, chief commercial officer; and Anders Bell, chief engineering and technology office
Samuelsson also stated the new model “will be a bigger car” built for the American market, with “room for families and luggage,” which points to an SUV body style. Chief commercial officer Erik Severinson narrowed things down further, stating that “XC90-sized vehicles are very important” for the American market, and that such models are a “natural product” for Volvo. It’s likely, then, the new hybrid will be the replacement for the current XC90, which was given a stay of execution and updated earlier this year as Volvo backed off plans to build only EVs by 2030. While some number of the new hybrid SUVs will be exported, there are no plans to send any to China.
Similar to its form factor, the choice of a hybridized powertrain was made with the U.S. in mind as well, as “many places in America are not ready for fully electric.” It is emblematic of Volvo’s latest strategy of “Build Where We Sell,” a regionalized approach that optimizes vehicle design, supply chain, and assembly for specific markets, utilizing common electrical, software, and mechanical architectures.
Volvo’s Charleston plant opened in 2017 and has spurred a total of $1.3 billion in investment and thousands of new jobs. Those numbers are sure to grow as the company utilizes more of its capacity, eventually bringing on second and third shifts. The plant also acts as a hedge against shifting and unpredictable U.S. tariffs, which accelerated the company’s plans regarding Charleston. Right now for EX90 production, Volvo stated that 60 percent of its parts come from North American suppliers, including 13 percent from the area immediately around the South Carolina plant.
Erik Johnson
Erik Johnson fell in love with cars before he could talk, carrying that passion through graduation from the University of Michigan. He’s led digital content for Automobile and Car and Driver, and now oversees print and digital content for MotorTrend. He still pinches himself every day.
