Volvo Car has confirmed it will proceed with plans to manufacture a new electric vehicle (EV) in the United States starting in late 2026, despite the Trump administration's reversal of EV tax incentives and growing headwinds for the sector in the U.S. market. CEO Hakan Samuelsson stated in an interview that Volvo remains committed to its U.S. EV strategy, emphasizing belief in the long-term trend toward electrification and noting that the company's plans are unchanged by recent policy shifts [1].
Production of Volvo's new EX60 electric sport utility vehicle began on April 22 at the company's Gothenburg, Sweden factory, marking a significant milestone in Volvo's global electrification efforts [1]. Samuelsson also revealed that Volvo will introduce a '2nd-generation' hybrid model to the market, reflecting a strategic pivot to offer consumers flexibility amid caution from both consumers and governments regarding fully electric vehicles. "We see the market evolving and want to offer customers flexibility with advanced hybrid technologies alongside our battery EVs," Samuelsson said [1].
The decision to maintain U.S. EV production plans comes as several other automakers are reconsidering or scaling back their EV strategies in response to policy and market uncertainties. While no specific financial figures or chart data were disclosed, Samuelsson reiterated Volvo's confidence in the U.S. market and the company's ability to adapt to regulatory changes and shifting consumer preferences [1].
CONCLUSION
Volvo Car is moving forward with its U.S. EV production plans despite policy reversals under the Trump administration. The company’s commitment signals confidence in long-term electrification trends and adaptability to evolving market and regulatory conditions.