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Volvo News: To Avoid Tariffs, Volvo Sources XC60s For U.S. From Sweden


William Maley

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Volvo is shifting production of XC60s destined for the U.S. from China to Europe in an effort to avoid a 25 percent tariff on Chinese imports.

"We will, of course, reshuffle here and take XC60s for the U.S. from our factory in Europe, and let China produce for other markets," Volvo CEO Håkan Samuelsson told Reuters.

Samuelsson went on to say that the shift has already begun.

Earlier this month, the Trump administration slapped a 25 percent tariff on $34 billion in Chinese imports, including Volvo's XC60 and S90. Unlike the XC60, the S90 is only built in China, leaving it in a difficult place. In turn, the Chinese government increased tariffs on imported U.S. vehicles to 40 percent. 

Source: Reuters


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If the president thinks that highish tariffs will bring production to the USA on a permanent basis, he has another thing coming.  While SOME foreign-made vehicles are assembled here, not all of them will.  There is no reason that BMW would ever build their sedans here; same with Mercedes or VW or Audi.  Volvo moving some of its production to Sweden does not prevent the president from essentially declaring a trade war against Sweden in particular or Europe more generally.

Sorry, no one can bring back the Eisenhower 1950s, even if this president and a lot of midwesterners would like to do just that.

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I wonder what percentage of foreign-branded vehicles sold in the US are built in the US...a lot of the high volume sedans are built here (Accord, Altima, Camry, Corolla etc).   And BMW and M-B build most of their CUVs/SUVs here, as do others (Honda Pilot, etc). 

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20 hours ago, riviera74 said:

If the president thinks that highish tariffs will bring production to the USA on a permanent basis, he has another thing coming.  While SOME foreign-made vehicles are assembled here, not all of them will.  There is no reason that BMW would ever build their sedans here; same with Mercedes or VW or Audi.  Volvo moving some of its production to Sweden does not prevent the president from essentially declaring a trade war against Sweden in particular or Europe more generally.

Sorry, no one can bring back the Eisenhower 1950s, even if this president and a lot of midwesterners would like to do just that.

C-Class, Passat, S60, are all built here for US consumption.  Where Trump is shooting himself in the foot is with exports.  It could cause BMW to rethink future investment in their plant here because it does produce vehicles mostly for export. 

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4 hours ago, Drew Dowdell said:

C-Class, Passat, S60, are all built here for US consumption.  Where Trump is shooting himself in the foot is with exports.  It could cause BMW to rethink future investment in their plant here because it does produce vehicles mostly for export. 

I agree with you on retaliation by China and the EU, since they will not stand for this.  But does he understand that?  I think not.

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