Volvo Car has confirmed its commitment to manufacturing electric vehicles in the United States, even as the Trump administration rolls back tax incentives for EVs, according to CEO Hakan Samuelsson in an interview with Nikkei Asia [1]. The company will proceed with plans to start producing a new electric vehicle in the U.S. in late 2026, maintaining its long-term investment strategy in the American market despite policy headwinds [1].
Production of Volvo's new EX60 electric sport utility vehicle began on April 22 at the company's Gothenburg, Sweden factory [1]. Samuelsson emphasized that the U.S. remains a key market for electrification and that Volvo's investment reflects confidence in the sector's future, regardless of current regulatory changes [1].
In response to shifting market dynamics, Samuelsson highlighted Volvo's strategy to offer both hybrids and full electric vehicles, allowing the company to adapt to changing consumer preferences and regulatory environments [1]. He noted that while Volvo is not abandoning full electrification, hybrids are expected to play a significant role in the near term due to current market signals [1]. Financial specifics regarding the U.S. EV facility investment were not disclosed [1].
CONCLUSION
Volvo Car is moving forward with its U.S. EV production plans despite the rollback of tax incentives under the Trump administration. The company is positioning itself to balance hybrids and EVs, reflecting a flexible approach to evolving market and regulatory conditions.