[Source: Observer Network by Pan Yuchen and Liu Huaowen, edited by Gao Xin] According to a report on April 10 by Automotive News, Volvo has decided to stop selling its flagship sedan, the S90, in the United States due to Trump's tariff policies.

Sales data shows that Volvo sold a total of 1,364 units of the S90 in the U.S. in 2024. The only global production base for the S90 is located at Volvo's Daqing factory in Heilongjiang Province, China.

Quoting sources, Automotive News reported that sales of the S90 in the U.S. are very low. Volvo believes it would be better to cancel this model rather than deal with the tariff issues.

The decision to stop selling the S90 in the U.S. means that Volvo will exit the increasingly shrinking American sedan market. Last summer, Volvo had already ceased production of the S60 sedan at its South Carolina plant.

Volvo South Carolina Plant - Volvo

The U.S. is an important market for Volvo, which sold over 125,000 vehicles there in 2024. However, Trump's tariff policies pose a survival threat to Volvo's business in the U.S. In the first quarter of this year, 96.8% of the vehicles sold by Volvo in the U.S. were imported from Europe or China.

In a memo sent to dealers on April 9, Michael Cotton, President of Volvo's U.S. and Canada region, stated: "The current global economic and geopolitical situation is severe and having an impact on our business."

He said that Volvo is accelerating the production of its electric vehicle EX90 at the South Carolina plant to increase output and reduce costs.

Cotton also mentioned that Volvo is considering adding another model (XC90) to production at the U.S. plant, which has an annual capacity of 150,000 vehicles.

The South Carolina plant has the capability to produce the first and second-generation SPA platform models of Volvo.

Former CEO Jim Rowan of Volvo once stated: "We have spare capacity at this plant, so the lead time for introducing new models will be greatly reduced."

This article is an exclusive contribution by the Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7492003931942486563/

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