Volvo plans to add U.S. XC60 production and an unnamed next-generation hybrid at its Ridgeville, South Carolina, plant, while later plans would make the site the sole production location for the Polestar 3. The company says the moves are intended to increase plant use and support U.S. and export demand. Volvo has not disclosed a new project budget, incremental output target or job total.
What Volvo plans to build in Ridgeville
The plant outside Charleston currently builds the fully electric Volvo EX90 and Polestar 3, according to Volvo’s September 23, 2025 announcement. The company has outlined three additional production changes, announced at different times:
| Vehicle or change | Powertrain or scope | Timing and status |
|---|---|---|
| Volvo XC60 | Volvo described it as a global best-seller; the July announcement did not specify a powertrain for U.S. production. | Planned to begin at Ridgeville in late 2026, per Volvo’s July 16, 2025 announcement. |
| Next-generation Volvo hybrid | Hybrid; Volvo said it was being designed for U.S. market demands but did not name the model. | Planned before 2030, per Volvo’s September 23, 2025 announcement. |
| Polestar 3 | Fully electric. In March 2026, Volvo Cars and Polestar announced plans to consolidate production at Ridgeville; the model was also being produced in Chengdu, China. | Consolidation is a later production-footprint plan, not a detail of the September 2025 investment announcement. The March release did not state a start date. |
The XC60 schedule is a stated plan, not confirmation that U.S. production has started. The announcements do not provide a more specific date for the hybrid or Polestar 3 production changes.
Why Volvo says it is expanding the plant’s role
Volvo describes Ridgeville as part of a strategy to regionalize production for customer demand, make better use of the facility, support volume and financial growth, and serve regional and export markets. CEO Håkan Samuelsson called the U.S. both an important growth market and a strategic production site in the March 2026 announcement. These are the company’s stated aims; the releases do not establish what output or financial results the plans will deliver.
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Volvo pointed to U.S. demand for the XC60: it reported more than 27,000 U.S. sales in the first eight months of 2025, almost 20% higher year over year. Volvo also said more than 2.7 million XC60s were on roads globally. Those are company-reported figures, not independent sales estimates. The company said U.S. production could support manufacturing jobs, but it did not attribute a specific number of jobs to these plans.
What the investment and capacity figures mean
Ridgeville has installed capacity of 150,000 cars per year, a figure Volvo stated in 2025 and reiterated in 2026. Installed capacity describes the plant’s stated production capability; it is not its actual annual output. The announcements do not give current utilization or a project-specific increase in annual production.
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Volvo said it had invested $1.3 billion in the facility over the preceding decade. That is cumulative historical investment, not a newly announced budget for the XC60, hybrid or Polestar 3 plans. The company has not disclosed a new investment amount for the continuing plant investment.
How Ridgeville fits into Volvo’s U.S. manufacturing history
Volvo says the plant broke ground in 2015 and began S60 production in 2018. Its history page, Celebrating Volvo in the United States, describes the site’s U.S. manufacturing background. The later plans would broaden Ridgeville’s role beyond the vehicles already being built there, but Volvo’s releases do not quantify the resulting employment or economic impact.
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What remains unquantified
- The new spending amount for the current plans.
- How many additional vehicles the plans would produce annually, or the plant’s future utilization rate.
- The number of jobs attributable to the XC60, hybrid or Polestar 3 changes.
For the original investment and hybrid announcement, see Volvo Cars’ September 23, 2025 release. The XC60 schedule appears in the July 16, 2025 announcement; the Polestar 3 consolidation plan was announced separately in March 2026.
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