Chinese engineering, Swedish badge, American VIN: Volvo opens its US factory to outsiders

© A. Krivonosov

Volvo is ready to open its plant in Ridgeville, South Carolina, to other automakers. The idea is simple: the site should run at a fuller pace rather than wait for its own models to fill the capacity on their own.

The plant is designed for roughly 150,000 vehicles a year. It currently builds the Volvo EX90 and Polestar 3, with the XC60 set to join the line from late 2026. For Volvo, this is a way to dig in deeper in the US, where local assembly is no longer just a plus — it has become a shield against tariffs and import price swings.

Volvo Cars chief executive Håkan Samuelsson put it like this: «That is something I think we need, as we are now increasing our presence in the US». He then added: «It’s part of the regionalisation of the world. We need to be much more industrially present in the US, and we need to fill the factory we have here».

Against the backdrop of import duties, the stance looks pragmatic. American brands could receive up to $2.3 billion in tariff refunds, but foreign companies have to find other routes. Local assembly cuts the risk of sudden price hikes and makes supply more stable.

The most interesting layer is Geely. Volvo belongs to the Chinese group, which means the South Carolina plant could in theory become a doorway for a wider Geely presence in the US. Samuelsson has already signalled that low-cost Chinese-origin EVs could be built at the American site.

For buyers, this may end not with loud corporate press releases but with the arrival of new EVs that carry local assembly and a softer price tag. For competitors, however, the scheme looks far less harmless: Chinese engineering, a Swedish brand and an American VIN — a combination that could work all too well in today’s market.