- Tariffs are pushing some Volvos out of the U.S. market.
- Many of the firm’s sedans and wagons will now not be offered within the States.
- Do not get it twisted—this does not imply Volvo is leaving anytime quickly.
Volvo needs you to know that it is undoubtedly not leaving the U.S. Like, pinky promise, swearsies-realsies, not leaving. It simply so occurs that it is taking somewhat break from promoting a bunch of various fashions over right here. However it’s nonetheless very a lot into us, so please do not make this bizarre.
Earlier this week, the Swedish automaker hit pause on the sale of a number of foreign-built fashions within the States. Sadly, that meant chopping out fashions that it believes will not be value its efforts to proceed promoting overseas, which means that the majority sedans and wagons are getting the axe. The blame? Shock, shock—it is tariffs.
Photograph by: Volvo
Talking to Reuters, the automaker confirmed that it was working to tug most sedans and wagons from its U.S. portfolio as customers simply do not appear . This is not the primary time we have heard this; Nissan additionally just lately killed off a pair of electrical sedans meant for the U.S. because it was dealing with the “actuality” of a shrinking sedan market.
The S60, for instance, ended manufacturing final 12 months. Volvo additionally halted gross sales of the S90, considerably prior to anticipated (for context, Volvo introduced earlier this 12 months that it will halt gross sales of the Chinese language-built sedan within the U.S. on the finish of 2025). The automaker additionally will not be bringing its 670-horsepower ES90 electrical sedan to the Statesbecause it introduced that it was unattainable to promote the automobile for a revenue within the U.S. market.
And with the international discontinuation of the V90 imminentthe one remaining wagon offered within the U.S. will quickly be the V60, which sells primarily in crossover-esque Cross Nation guise.
Outdoors of the ES90, the one EV affected to date is the Volvo EX40 (XC40 Recharge), which is not as shiny or new as a few of Volvo’s newer platforms. Nevertheless, the automaker did not provide a cause why manufacturing had been briefly halted when talking with Reuterssolely that gross sales would resume “shortly.” And let’s not speak about what tariffs did to the EX30bumping it from a promised worth of $35,000 to a beginning price of $46,195.
So let’s do some recapping. That leaves us with—test notes—crossovers and SUVs. It is okay, you possibly can sigh now.
However for Volvo, that is what it believes is worthwhile within the U.S. market. Or, at the least what the corporate can promote profitably after factoring in tariffs. As a result of Volvo is owned by Chinese language automaker Geely, the model does depend on the worldwide market to piece collectively its automobiles. That might considerably have an effect on the model’s means to cost its autos competitively, even within the premium phase.
Photograph by: Patrick George
It isn’t onerous to see why Volvo is doing this. Its North American gross sales are down 18% year-over-year for the second quarter, in response to the automaker’s monetary outcomes launched yesterday. Its year-to-date gross sales aren’t significantly better both—down about 10% from 2024.
Martin Lundstedt, the model’s President and CEO, referred to as 2025 “a wait and see mode” for its clients within the U.S., noting that every part from passenger automobile gross sales to industrial vans is struggling. In reality, Lundstedt says that the automaker is “decreasing manufacturing capability (in North America) to adapt to the decrease demand.” However it’s not giving up on U.S. manufacturing. The corporate additionally introduced that it constructed its best-selling crossover, the XC60, in America to dodge tariffs.
For customers, the transfer means fewer total non-crossover-shaped choices to purchase. However for Volvo, it means maintaining its foot within the door with one of many largest automotive markets on this planet. All issues thought-about, it needs to be a wake-up name to automobile consumers that tariffs are, in truth, taking a toll on what manufacturers can provide within the states and will in the future even hit that mannequin you’ve got been eyeballing to your subsequent buy.
