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  • William Maley
    William Maley

    Volvo Scraps Production Plans In An Effort To Dodge Tariffs

      Those dang tariffs!

    Back in the summer, Volvo opened its first plant in South Carolina where it would be producing the all-new S60 sedan. The original plan was to export half of the S60s built to other markets. But the current trade dispute between the U.S. and China has caused Volvo to change their plans.

    Anders Gustafsson, president of Volvo Cars USA said at a meeting of the Automotive Press Association in Detroit that the automaker is changing the focus of the South Carolina factory to build S60s for the U.S. market. A small number of S60s will still be exported to Europe.

    “We’ll go at this change not with a smile, but we know what we need to do. We have a global manufacturing structure that helps us maneuver in these tough waters,” said Gustafsson.

    Back in July, Volvo announced that it would be sourcing XC60s destined for the U.S. from Europe. Previously, XC60s heading to the U.S. were coming from China. The move is expected to take place in January. Right now, Volvo is absorbing the 27.5 percent tariff on Chinese auto imports on the XC60. But Gustafsson said that is taking a big toll on their profits.

    “We are absorbing the tariffs, and that really is what you saw in our financial results. But we can, under no circumstances, absorb tariffs in the long run. It’s huge,” he said.

    The tariffs could also affect future plans for the South Carolina plant. Volvo is planning to have production of the next-generation XC90 take place in the U.S. beginning in 2022. This would increase the number of workers from 1,200 to 3,900. Volvo will export some XC90s to Europe, but also considering exporting some China at a loss.

    "We might need to make the XC90 in another country too, if tariffs keep up," said Gustafsson.

    Source: Bloomberg (Subscription Required), Motor Trend



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    Trade wars can be good if approached in a professional way. Sadly the bully on the playground approach is Hurting US consumers, Hurting US Jobs and the wages of US citizens. Long term, less money in your pocket to buy stuff.

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    48 minutes ago, dfelt said:

    Trade wars can be good if approached in a professional way. Sadly the bully on the playground approach is Hurting US consumers, Hurting US Jobs and the wages of US citizens. Long term, less money in your pocket to buy stuff.

    The bully only cares about the bully and nobody else.  Hence why trade wars can be misused or abused by said bully.

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    1 hour ago, riviera74 said:

    The bully only cares about the bully and nobody else.  Hence why trade wars can be misused or abused by said bully.

    Sadly we seem to be in an era of Bully's around the glob.

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    43 minutes ago, dfelt said:

    Sadly we seem to be in an era of Bully's around the glob.

    The darker the world gets the more I like the inside of my garage workshop.  And given the current state of the world...I am glad my shop doesn't have any windows...

    Volvo is building some sweet looking Iron though, so I wish them well. 

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      Apple CarPlay and Android Auto is standard and does make Sensus slightly easier to use. But I think some real improvements will come when the next version of Sensus comes out that will be based on Google’s Android platform. I’m also hoping for some more redundant controls such as a fan knob or temperature buttons.
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      Two Good Models, But One Stands Tall
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      Between the two, I found myself being more impressed with the V60 Cross Country. It has more character in its design compared to the S60 and the ride is much more comfortable. The almost $57,000 price-tag is a bit much, but with some smart optioning, you can make it much more reasonable. As for the S60, I did find it to be quite a decent steer. But the ride does need some work when on the larger wheels. Also, the Momentum can get quite expensive if you go overboard with options. My tester carried a nearly $46,000 price tag, three-grand more than the T5 versions of the R-Design and Inscription which come with some of the optional features as standard.
      The S60 and V60 Cross Country are excellent alternatives to the usual suspects, just be careful on the options.
      How I would configure them:
      There are two different ways I would go configuring an S60.
      Value: Start with the Momentum T5 at $36,050 and add Heated Front Seats & Steering Wheel ($750) and Premium Package ($2,050) to end up with a nicely equipped S60 at $39,845. You will miss out on some items such as the 360’ camera system, pilot assist, and Harman Kardon audio system, but that pushes the price to over $44,000. Sport: An R-Design T6 fits the bill here and comes with all-wheel drive as standard for a price of $48,045. Decide which metallic paint you would like ($645) or stick with the basic black. Add on the Advanced Package and Heated Rear Seats and Steering Wheel to end up with a final price tag of $51,645 for black or $52,290 for any of the metallic colors. For the V60 Cross Country, it would be similar to my test vehicle with most of the option packages and adding the Harman Kardon Premium Sound system ($800) to bring the final price to $52,795.
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      Year: 2020
      Make: Volvo
      Model: S60
      Trim: T5 Momentum
      Engine: 2.0L Turbocharged DOHC Inline-Four
      Driveline: Eight-Speed Automatic, Front-Wheel Drive
      Horsepower @ RPM: 250 @ 5,500
      Torque @ RPM: 258 @ 1,500
      Fuel Economy: City/Highway/Combined - 23/34/27
      Curb Weight: 3,657 lbs
      Location of Manufacture: Ridgeville, SC 
      Base Price: $36,050
      As Tested Price: $46,249 (Includes $995.00 Destination Charge)
      Options:
      Advanced Package - $2,500.00
      Premium Package - $2,050.00
      Multimedia Package - $1,850.00
      19" 5-Spoke Cut Wheels - $800.00
      Heated Front Seats & Heated Steering Wheel Package - $750.00
      Pebble Grey Metallic - $645.00
      Linear Lime Deco Inlay and Interior High Level Illumination - $600.00
      Year: 2020
      Make: Volvo
      Model: V60
      Trim: Cross Country
      Engine: 2.0L Turbocharged DOHC Inline-Four
      Driveline: Eight-Speed Automatic, All-Wheel Drive
      Horsepower @ RPM: 250 @ 5,500
      Torque @ RPM: 258 @ 1,500
      Fuel Economy: City/Highway/Combined - 22/31/25
      Curb Weight: 4,202 lbs
      Location of Manufacture: Gothenburg, Sweden
      Base Price: $45,100
      As Tested Price: $56,990 (Includes $995.00 Destination Charge)
      Options:
      Bowers and Wilkins Premium Sound - $4,000.00
      Cross Country Pro Package - $2,800.00
      Advanced Package - $2,500.00
      Heated Front Seats & Heated Steering Wheel Package - $750.00
      Birch Light Metallic - $645.00
      Park Assist Pilot - $200.00
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