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Volvo Slashes US Production Jobs Over Tariffs

  • Volvo’s Charleston plant cut 125 jobs due to fluctuating trade policies and tariffs.
  • Tariffs have forced Volvo to rethink its US strategy, including discontinuing the S90 sedan.
  • The company intends to create 4,000 new jobs in South Carolina, but timing is unclear.

President Donald Trump has long proclaimed that their new tariffs will encourage car manufacturers to build more of their vehicles in the United States. While some brands have indeed strengthened their commitments in the local market, Volvo has gone ahead and unexpectedly announced it will actually cut 5% of the workforce at its factory in Charleston, South Carolina.

The Swedish brand confirmed that these cuts do not form part of the redundancies it announced during the release of its first-quarter earnings last week. In total, the Charleston cuts will impact roughly 125 of the 2,500 employees who work there. It did not say who will lose their jobs or if the firings will impact production.

Read: Trump’s Tariffs Drive Volvo To Build A New Model In The US

Volvo’s South Carolina plant has the capacity to build 150,000 vehicles annually. However, it currently only builds the electric EX90 and the Polestar 3 there. It blamed the new job cuts on ever-changing trade policies, tariffs, and changing market conditions.

Despite slashing over 100 jobs, Volvo told Reuters that the US remains an important part of its long-term strategy and it’s still committed to boosting local output in the future. It also said it intends to eventually create 4,000 new jobs in South Carolina, but did not specify when these new jobs could be created.

 Volvo Slashes US Production Jobs Over Tariffs

It seems likely that Volvo is looking to slash any unnecessary expenses while global economies begin to adjust to America’s move away from globalization. As recently as last week, Volvo chief executive Hakan Samuelsson said the brand is already thinking about building an additional model in the US. While he did not specify which model this will be, the XC60 and XC90 are the most likely options.

Trump’s tariffs have also forced Volvo to rethink its local sales strategy. It will reportedly stop selling the S90 sedan in America from next year because it’s imported from China. This will allow Volvo to focus on models including the XC40, XC60, and XC90.

 Volvo Slashes US Production Jobs Over Tariffs

Volvo’s EV Crash Hits Harder Than Expected As Buyers Walk Away From Batteries

  • Volvo had a bad start to 2025, with sales dropping 7 percent Jan-April.
  • EV sales were hit hardest, falling an alarming 32 percent in April.
  • Volvo recently abandoned a commitment to go EV-only by 2030.

Last September, Volvo rowed back from its previous pledge to go all-electric by 2030, and now, eight months later, that looks like a very smart move. The Geely-owned automaker just announced its latest sales figures, and they show registrations of fully electric Volvo vehicles fell by almost one-third.

Volvo’s EV sales fell 32 percent in April versus the same period last year. The company sold 17,090 EVs in April 2024, compared to the 11,697 EVs sold in the month just gone. PHEV sales actually grew fractionally (by 2 percent) to 14,688, but MHEV and ICE registrations also dropped 5 percent to 34,315.

Related: Trump’s Tariffs Drive Volvo To Build A New Model In The US

That means Volvo’s combined electric sales were down 16 percent, and total sales for all power types for April stood at 65,838, or 11 percent lower than they were for the corresponding period last year. And April’s terrible performance really dragged down the overall Q1 EV sales figures, which showed a 6 percent sales decline and are down 7 percent Jan-April.

The lacklustre demand for EVs comes despite the EX30 being rolled out to the US and sales of the big EX90 also now having begun. But Volvo is one of the automakers affected by President Trump’s tariffs, albeit not as badly affected as Audi or Porsche. Although it does build the EX90 at its South Carolina plant in the US, other models like the XC90, XC60, XC40, and EX30 are all made overseas and subject to import levies.

Volvo sales April 2025
Apr-25Apr-24ChangeJan-Apr 25Jan-Apr 24Change
Electrified models26,38531,523-16%100,868106,518-5%
– Fully electric11,69717,090-32%44,14655,261-20%
– Plug-in hybrid14,68814,4332%56,72251,25711%
Mild hybrids/ICE32,49634,315-5%130,232142,007-8%
Total58,88165,838-11%231,100248,525-7%
Data: Volvo
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Volvo is looking to address that issue and is planning to build a second model – probably the XC60 or XC90 – at the same site. Volvo recently dropped the S90 from the US market due to tariffs, though the newly facelifted sedan will still be offered in Asia.

The man tasked with managing the turnaround is Hakan Samuelsson, who returned to the CEO role on April 1 on a two-year contract while the company looks for a permanent new boss. He replaces Jim Rowan, who took over from Samulesson in 2022 but was shown the door this spring after three years in the big chair.

 Volvo’s EV Crash Hits Harder Than Expected As Buyers Walk Away From Batteries
Credit: Volvo

EVs Dominate 2025 World Car Awards But Americans Can’t Even Buy Most Of Them

  • Electric vehicles have dominated the 2025 World Car Awards by winning five categories.
  • The Kia EV3 was named World Car of the Year and it’s slated to come to the United States.
  • All winners were EVs with the exception of the hybridized Porsche 911 Carrera GTS.

The World Car Awards have been presented at the New York Auto Show and they were a truly global affair. So much so, that most of the winners aren’t even available in the United States.

While that’s disappointing, the Kia EV3 was named 2025 World Car of the Year. The model beat the BMW X3 and Hyundai Inster to win top honors, earning Kia their second consecutive World Car of the Year award following last year’s crowning of the EV9.

2025 Kia EV3 Review: Everything We Love About The EV9 Made More Affordable

The EV3 isn’t offered in America, but it’s coming as long as tariffs don’t get in the way. That being said, we tested it earlier this year and came away pretty impressed.

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Electric vehicles had a strong showing this year as the Volvo EX90 was named 2025 World Luxury Car. It bested the Porsche Macan and Porsche Panamera to take top honors.

The electric crossover starts at $79,995 and features a 111 kWh battery pack as well as a dual-motor all-wheel drive system with 402 hp (300 kW / 408 PS) and 568 lb-ft (769 Nm) of torque. This enables the model to hit 60 mph (96 km/h) in 5.7 seconds and travel up to 310 miles (499 km) on a single charge.

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Moving on, the Hyundai Inster / Casper Electric was named World Electric Vehicle. It’s a pint-sized urban crossover that has 113 hp (85 kW / 115 PS) and is primarily offered in the East.

The EV trend continues as the BYD Seagull / Dolphin Mini was named World Urban Car. The hatchback costs less than $10,000 in China and the Seagull Intelligent Driving Edition offers up to 252 miles (405 km) of range.

World Car Design of the Year, unsurprisingly, went to an EV. It was the Volkswagen ID. Buzz, which is interesting as the electric van has been around for a few years now. That doesn’t exactly seem fair, but the model bested the Kia EV3 and Toyota Land Cruiser / Land Cruiser 250 for the title.

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Last but not least, there’s the only non-EV to win an award. It was the Porsche 911 GTS, which was named 2025 World Performance Car.

The sports car starts at $169,800 and features a hybridized powertrain that consist of a turbocharged 3.6-liter flat-six, an electric motor, and a small battery pack. This gives the model a combined output of 532 hp (397 kW / 539 PS) and 449 lb-ft (608 Nm) of torque. This enables the coupe to accelerate from 0-60 mph (0-96 km/h) in 2.9 seconds before hitting a top speed of 194 mph (312 km/h).

 EVs Dominate 2025 World Car Awards But Americans Can’t Even Buy Most Of Them
 EVs Dominate 2025 World Car Awards But Americans Can’t Even Buy Most Of Them
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US EV Sales Jump In Q1, But The Biggest Losers Might Surprise You

  • Almost 300,000 EVs were sold in the United States during the first three months.
  • Porsche, Toyota, VW, Volvo, and GMC increased their sales in Q1 significantly.
  • Tesla sales dropped by 9%, but it still retains a 43.5% share of the EV market.

Electric vehicle sales in the United States are gaining ground, but the road to mainstream dominance is still a long one. While EVs made a notable leap forward in the first quarter of 2025, they continue to account for only a fraction of total new car sales. Some automakers rode a wave of growth with new models and fresh demand, while others—Tesla included—faced early-year setbacks.

Read: Tesla’s Q1 Collapse Fueled VW’s Shock Rise In The EV Race

In total, 296,227 electric vehicles were sold nationwide between January and March, marking an 11.4 percent increase over the 265,981 units delivered during the same period last year. New data shows that General Motors had a particularly strong showing, with more than 30,000 GM EVs finding buyers in Q1—nearly doubling its output from a year ago. A mix of fresh offerings from Chevrolet and GMC helped drive the gains, while Cadillac continued to post steady performance.

GM Surges with Chevrolet and GMC

Chevrolet alone sold 19,186 electric vehicles in Q1 2025, a 114.2% increase over the 8,957 units it moved in the same quarter last year. The big success story was the Equinox EV, which led the brand’s lineup with 10,329 sales. The Blazer EV followed with a staggering 931.2% increase—rising from just 600 units in Q1 2024 to 6,187 units. The Silverado EV also posted a strong debut with 2,383 deliveries. Meanwhile, the Bolt EV and EUV were essentially absent, with only 13 units sold after GM officially discontinued the models two months ago.

GMC contributed solid numbers as well. The Hummer EV pickup and SUV posted a combined 3,479 sales, up 108.6%, while the brand also moved 1,249 units of the new Sierra EV.

According to Cox Auto, Porsche recorded the highest EV growth rate of any brand, with sales up 249% thanks to the arrival of the new Macan Electric. Toyota’s EV sales climbed 195.7% to 5,610 units, the Volkswagen Group jumped 183%, and Volvo spiked 172.9% on the strength of the new EX30 and EX90 models.

 US EV Sales Jump In Q1, But The Biggest Losers Might Surprise You
Cox Auto

Tesla Flounders While Others Flourish

Tesla by contrast, didn’t share in the early-year enthusiasm. The company saw its US sales drop 9% year-over-year, delivering 128,100 vehicles in Q1. Still, even with the decline, Tesla holds a commanding 43.5% share of the U.S. EV market—nearly half of all electric cars sold.

Several other automakers also saw declines. Mercedes-Benz posted the steepest drops, down a staggering 58%. Rivian followed with a 37% dip, and Kia slipped 24% compared to the same quarter last year.

Looking ahead, Cox Automotive expects the rest of the year to be anything but smooth. “The rest of 2025 will likely be a volatile one for EV sales in the U.S., despite the introduction of new product and healthy incentives,” the firm noted. Tariff-related headwinds could weigh heavily, particularly for automakers relying on imported materials. Steel and aluminum tariffs are already a hurdle, and with China supplying much of the world’s EV battery materials, the ongoing trade standoff may distort the market further.

 US EV Sales Jump In Q1, But The Biggest Losers Might Surprise You
Cox Auto

Volvo 240R EV Study Throws A Brick At Electric Performance

  • The Volvo 240R is an independent concept for a high-performance sedan and wagon.
  • It blends the boxy shape of the classic Volvo 200 Series with modern design elements.
  • The project was created by independent designer Jordan Rubinstein-Towler.

Polestar has come a long way from its origins as Volvo’s performance division, evolving into a standalone electric vehicle manufacturer. But with this shift in direction, it raises the inevitable question: Will future Volvo models get high-performance variants like BMW’s M division or Mercedes’ AMG lineup? Well, independent designer Jordan Rubinstein-Towler has ventured into this very idea with his creation, the 240R, which is a high-performance, retro-futuristic take on his own Volvo 240 concept.

A Nod to the Past with a Twist

In keeping with the spirit of the original design study, the Volvo 240R blends the unmistakable boxy shape of the old 200 Series with modern styling. The R version introduces a sporty bodykit—think deeper bumpers, side skirts, a subtle diffuser, and a ducktail spoiler. It’s like the 240 got a solid workout, but still managed to keep its classic personality.

More: Modern Volvo 240 Design Study Proves Boxy Can Be Sexy Again

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The renders speak for themselves. Rubinstein-Towler’s design work strikes a perfect balance with black and body-colored accents on the revamped parts, delivering that classic yet contemporary look. To really emphasize the performance angle, the car rolls on new black five-spoke alloy wheels, an homage to Volvo’s sporty heritage.

In one of the renderings, the sedan poses next to a Volvo 240 racer that enjoyed great success in touring car championships back in the ’80s. Likewise, the wagon is joined by the Volvo 850 R from the mid-90s.

Modern Interior, Retro Vibes

But the 240R isn’t just about looking fast on the outside—Rubinstein-Towler has also done some work on the interior. Highlights include the blue upholstery that brings a splash of color to the retro-inspired bucket seats, along with a fresh new steering wheel design. The digital cockpit, while updated, keeps things minimalist with a few smaller displays, paired with physical controls to preserve that tactile feel on the center console.

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Illustrations Jordan Rubinstein-Towler

Power to Match the Looks?

Now, if this car ever made it to production, what’s going to power this modern interpretation of the classic ‘brick’? Since the modern reimagining of the Volvo 240 is an electric vehicle, the (fictional) 240R would also be expected to run on a zero-emission powertrain.

A quick peek into the Geely parts bin—Volvo’s parent company—shows that a high-performance electric car is well within reach. Take the Twin Motor Performance version of the new Volvo ES90, for instance; it produces a combined 671 hp (680 PS / 500 kW). That’s plenty of power for both a high-performance sedan and wagon.

Speaking of the ES90, the electric liftback sedan recently debuted as a direct rival to the BMW i5 and Mercedes EQE. From Rubinstein-Towler’s renderings, it looks like his 240R proposal could slot in just below that model, potentially filling the gap left by the soon-to-be-discontinued S60/V60.

More: Volvo Doesn’t Need Wagons Anymore, Says SUVs Are The Future

Such an offering would compete against the upcoming BMW Neue Klasse i3 and the electric Mercedes C-Class. BMW M has already teased a high-performance version of the electric sedan, while Mercedes is expected to release an AMG version sooner or later.

Hopefully, Volvo’s design team is paying attention to the innovative concepts emerging from independent designers. Perhaps they’ll find some inspiration for future models – assuming they’re not too busy figuring out how to make their SUVs even more ubiquitous.

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Illustrations Jordan Rubinstein-Towler

First AI-Generated Video Ad From Volvo Doesn’t Show A Single Car

  • Volvo’s Saudi ad is AI-generated, with no cars shown and focus shifting to messaging.
  • AI reduced production time from months to weeks, making the process more efficient.
  • The ad uses a voiceover to connect its human-focused narrative to Volvo’s Saudi return.

In the ever-evolving world of advertising, where companies are constantly trying to outdo each other with the next big thing, Volvo has thrown a curveball in Saudi Arabia for a couple of reasons. First, it doesn’t actually feature a Volvo—or a car of any kind. Before anyone jumps to conclusions and assumes this is a rehash of what Jaguar recently did, hear this: the entire ad is a creation of artificial intelligence. It might even offer a glimpse into what we can expect from future brand campaigns.

Titled “Come Back Stronger,” the video ad is a surreal mix of vague, almost abstract clips. There are close-up shots of people, individuals running in the desert, and other scenes that seem completely unrelated to anything Volvo specifically does. What does tie it all together is the voiceover, which, to be fair, sounds like a car commercial—even if the visuals don’t match.

Read: Even Jaguar’s Designers Weren’t Convinced By Controversial Rebranding, Leaked Letter Claims

Here’s the script:

“They say some dreams are too ambitious but we’ve never believed in limits. Challenges didn’t hold us back, they pushed us forward. Every obstacle, every doubt, shaped us into something stronger because progress isn’t about the past, it’s about what’s possible. And what’s possible is everything. This isn’t just a return, it’s a comeback, and together, we vow to always come back stronger.”

So, what does all that mean when it comes to practical application? Volvo is hoping to sell more cars in Saudi Arabia with its new electrified lineup. That’s the long and the short of the entire ad campaign. Once again, Volvo greenlit this with zero cars in the video.

It’s unclear whether Volvo intentionally chose to leave cars out or if it simply had too much trouble getting the AI to generate a truly accurate Volvo model. According to Adweek, Osama Saddiq, the founder of Lion—the agency behind the ad—said, “This was a tough decision… to tell a deeply human story through the voices of Saudi locals… showing the car would have distracted from the narrative.”

Regardless of intention or execution, it’s clear that AI could soon become a powerful tool in the automotive world. Even Mercedes’ head of design has warned that AI might make designers obsolete within the next decade.

Behind-the-scenes storyboards from Lion show just how the company did the work. In addition, it said that by using AI it cut production time from months down to weeks. For many brands, that alone could be enough of an incentive to start experimenting with AI more frequently in the near future.

Volvo EX60 SUV Makes Surprise Appearance

  • Volvo gave us a glimpse of the new EX60 crossover, ahead of its launch next year.
  • It will ride on the new SPA3 platform, which will eventually underpin all future Volvos.
  • The XC60 recently got a facelift with styling tweaks and a new infotainment system.

After a series of high-profile leaks, Volvo finally unveiled the ES90 mid-size sedan earlier today. However, most people probably didn’t watch the reveal video that was livestreamed from Stockholm, Sweden.

If they had, they would have found a short teaser for the upcoming EX60, which will serve as the electric equivalent of the popular gas-powered XC60. It appears roughly 25 minutes into the clip as a woman opens a door to reveal a partially covered clay model. She quickly closes the door, but not before revealing an EX90-like rear end.

More: Volvo To Introduce 5 Models In 2025, EX60 Coming In 2026

While there isn’t much to see, the electric luxury crossover has angular upper taillights that reside on either side of the rear window. At the base of the window, they transition to the outside edges of the car.

Besides the taillights, we can see shapely rear haunches and a recessed liftgate. They’re joined by a black rear bumper that has a chrome horizontal element.

Volvo didn’t say anything about the crossover, but it was briefly mentioned during their 2024 financial presentation. In particular, the company noted the first EX60 test vehicle has been built and driven. They added the model will ride on the new SPA3 platform, which will “launch on target with significant reduction on cost.”

The company went on to suggest the SPA3 platform will debut shortly and be a scalable architecture that will eventually underpin every single Volvo. While we can expect to learn more in the coming months, the EX60 isn’t expected to be launched until next year.

Given that the crossover will ride on an all-new platform, it’s too early to talk about specifications. However, since it’s an upgraded version of the SPA2 platform, the EX60 might share some components with the EX90 and ES90.

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Volvo ES90 Takes On BMW i5 With More Style And Range

  • Volvo has unveiled its ES90 midsize electric liftback sedan.
  • Top versions get 671 hp and can reach 62 mph in 4 seconds.
  • The bigger 102 kWh available battery can cover 435 miles.

Volvo is best known for its SUVs these days, but this week it revealed the ES90, showing that its electric tech can works just as well, and look even more stylish, in a traditional midsize sedan.

Designed to take on the BMW i5 and Mercedes EQE among other options, the 5m-long (196.9 inches) ES90 arguably looks far better than both, with a strong chin, clean surfaces and a sporty fastback shape. Though it presents as a sedan, it has a practical liftback – but comes up short on trunk space next to the BMW.

Related: Volvo Still Not Sure If It Should Build An Electric Estate

Where it shouldn’t come up short is in interior room, particularly for those in the back. The 3.1 mm (122.1 inches) wheelbase is more than 100 mm (4 inches) longer than the BMW’s, and the Volvo also wins the range war.

While the leggiest i5 can only return 356 miles (573 km) on a full charge of its 81 kWh battery, the rangiest ES90’s 102 kWh power pack can take it 435 miles (700 km) in one go. Dual-motor versions get the larger battery and single-motor models make do with a smaller 88 kWh unit that can still deliver 404 miles (650 km) before needing a top-up.

Charging? No Problem

Unlike the EX90 SUV, the ES90 has 800-volt electrics, can handle 350 kW inputs (the i5 only takes 250 kW) and add 186 miles (300 km) of range in 10 minutes. A small frunk provides space for cable storage, again something the i5 doesn’t offer.

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The lineup start with the 328 hp (333 PS / 245 kW) Single Motor Extended Range, which costs £69,650 in the UK and can reach 62 mph (100 kmh) in 6.9 seconds. A 443 hp (449 PS / 330 kW) Twin Motor drops the 62 time to 5.5 seconds for £83,250, but for only £4,600 more the the flagship Twin Motor Performance provides 671 hp (680 PS / 500 kW) and does the run in 4.0 seconds flat. All three are limited to 112 mph (180 kmh).

A High-Tech Cabin

Inside, the ES90 features a 9.0-inch digital instrument tablet, a large 14.5-inch portrait touchscreen with built-in Google tech and light-colored Scandi decor and materials to maximize the sense of space. The sedans come equipped with Lidar for autonomous semi-driving prominently mounted above the windshield, but it won’t be functional until later in the model’s life.

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