Volvo Cars may take up to two years to expand US production to avoid tariffs, CEO tells daily DN

Reuters

Fri, Apr 11, 2025, 8:06 AM 1 min read

STOCKHOLM (Reuters) - Sweden's Volvo Cars, which is controlled by Chinese car shaper Geely, volition request up to 2 years to grow its U.S. car accumulation successful bid to debar hefty import tariffs, CEO Hakan Samuelsson told regular Dagens Nyheter (DN) connected Friday.

Volvo Cars is 1 of the astir exposed automakers to U.S. President Donald Trump's car tariffs arsenic it imports astir of its hybrid and electrical models from Europe.

A Volvo spokesperson declined to remark erstwhile contacted by Reuters.

Samuelsson told DN it would not beryllium sustainable for the institution successful the agelong word to merchantability European-made cars successful the United States astatine a 27.5% tariff, and that importing from the company's Chinese plants was "impossible" fixed the overmuch higher U.S. tariffs connected China.

"In the abbreviated term, wrong 1 to 2 years, it volition beryllium astir selling the cars we have," helium said, adding the concern would enactment unit connected nett margins but that customers volition besides person to wage more.

Samuelsson past week said Volvo Cars was moving towards expanding accumulation successful the U.S. arsenic a effect to tariffs.

(Reporting by Marie Mannes, penning by Essi Lehto, editing by Terje Solsvik and Susan Fenton)