To avoid tariffs imposed by Donald Trump, Volvo shifts the manufacturing of XC60 from China
Updated September 18, 2018
For a long time, Volvo has been manufacturing XC60 crossovers for the U.S. market in China, however, with the introduction of the newly imposed tariffs on Chinese imports, this agreement had to be terminated.
Coming up with a resolution for this problem, Volvo has announced that it would shift the production of U.S.-bound XC60s to Europe, a place where it has already been manufacturing copies of the crossover for the local market.
In an interview with Reuters, Volvo CEO Hakan Samuelsson went on to say that the shift has already begun.
According to Samuelsson, “Indeed we would reshuffle here(Europe) and export XC60s for the U.S. … directly from our factory in Europe, also we would continue to produce them in China for other markets.”
According to reports, the previously Chinese-built XC60s that would usually get shipped go to the U.S. would be sent across all markets worldwide. With a few models being sent to Europe for getting the right mix. China’s Geely is the proud owner of Volvo.
The announcement of imposing tariffs on other countries has been declared by President Donald Trump with the aim of reducing the U.S. trade deficit. Additionally, He has also held discussions for putting a 20 percent tax on European carmakers.
It was just recently that Volvo made the introduction of its production unit in the U.S. with the launch of a new plant in South Carolina back in the previous month. Also as per reports, the very first Volvo manufactured in the United States is all set to roll out by November 2018. Initially, the S60 model would be produced, and in 2021 the automaker will add the production line of the XC90.
Producing vehicles in the U.S also faces some heat by President Trump’s tariffs. However, in an interview with CNBC, Samuelsson went on to state, “The factory that we have built in Charleston would be providing employment opportunities for nearly 4,000 people, and according to our plan half of those would be working on manufacturing cars for export, so if by any chance, these tariffs prove to be an obstacle standing between us and the possibilities for us to export out of South Carolina, that would, in turn, lead to less employment in Charleston.”
The 2018 Volvo XC60 has gone through a complete makeover and has been redesigned with a new suspension setup, new engines, and a new exterior design, and. The compact crossover now rides on the modular SPA platform.
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