Why Is Volvo Discontinuing the S90 in the U.S.?
The Volvo S90 will exit the U.S. market following 2025 due to steep 125% tariffs on China-made vehicles imposed by the Trump administration. Automotive News reports that Volvo will cancel U.S. orders of the S90, citing low sales (just 1,364 units in 2023) and unsustainable tariff costs.
Key Reasons Behind the Decision:
- Tariff Impact: The 125% tariff on Chinese imports makes the S90 financially unviable.
- Low Demand: The S90 accounted for only ~1% of Volvo’s U.S. sales in 2023.
- SUV Focus: Volvo prioritizes high-demand models like the XC60 and XC90.
What This Means for Volvo’s U.S. Lineup
With the S60 sedan also ending production after 2025, Volvo will no longer offer sedans in the U.S. The upcoming ES90 electric sedan, built in China, faces similar tariff barriers, casting doubt on its U.S. launch.
Volvo’s Future U.S. Models:
| Model | Status | Production Location |
|---|---|---|
| XC40 | Continuing | Belgium/Sweden |
| XC60 | Continuing | Sweden |
| EX90 | New (2024) | South Carolina, USA |
| ES90 | Uncertain | China |
How Tariffs Are Reshaping Volvo’s Strategy
The 25% auto tariffs (excluding the paused reciprocal tariffs) force Volvo to rethink U.S. production. The brand may expand its South Carolina factory, which currently builds the EX90 and Polestar 3, to localize more models.
Potential Outcomes:
- Increased U.S. production to avoid tariffs.
- Shift to an SUV-only lineup in the U.S. by 2026.
- Delayed launches of China-made EVs like the EX30.
Will Other Volvo Models Be Affected?
Yes. The EX30 electric SUV, initially imported from China, faces uncertainty until production shifts to Belgium. Volvo’s memo to retailers hints at adding another U.S.-built model to its 150,000-unit-capacity South Carolina plant.
Conclusion: Volvo’s SUV-Centric Future
With sedans like the S90 and S60 phased out, Volvo’s U.S. lineup will rely on SUVs and localized EV production. Buyers seeking luxury sedans may need to explore alternatives like the Audi A6 or Mercedes E-Class.
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