Volvo is dropping the V90 wagon from its US lineup, alongside the S90 sedan
July 18, 2025 at 10:30
- Volvo builds cars in Europe and China, meaning it’s been hit hard by tariffs.
- The automaker recently said it cannot sell the ES90 profitably in the US.
- Plans to sell the EX30 in the US have also been changed over recent months.
Volvo’s lineup in the United States is becoming noticeably more limited and less interesting. Following recent news that new tariffs are prompting the company to begin building the XC60 stateside, Volvo has now confirmed it will phase out sedans and station wagons from its American offerings. Going forward, only half of Volvo’s 13 global models will remain available in the US, and all but one of those will be SUVs.
Read: Volvo Will Make SUVs In America To Avoid Trump’s Tariffs
US sales of the Volvo S90 have been suspended because it is made in China, as the model is built in China and now falls under a 100 percent import tariff. Volvo also says it cannot sell the upcoming all-electric ES90 sedan at a profit in the American market. The V90 station wagon is also on its way out.
Meanwhile, the company has revised its US plans for the EX30. Only the top-tier dual-motor version will be offered, meaning the more affordable single-motor variant, which could have been a competitor to the Tesla Model Y, won’t be available.
Tariffs Reshape Volvo’s Strategy
As noted by Reuters, Volvo is particularly exposed to the tariffs. While it does build some models at a plant in South Carolina, including the EX90, most of its vehicles are produced either in China or Europe. Currently, cars from Europe are subject to 27.5 percent tariffs when imported into the US, while those from China face 100 percent tariffs.
As a result, Volvo has revealed it is booking an impairment charge of 11.4 billion crowns or about $1.2 billion at current exchange rates for the second quarter due to the tariffs.
XC60 Takes Center Stage
The addition of XC60 production to its South Carolina facility could prove to be very important for the brand. This year, the XC60 has accounted for more than one-third of all Volvo sales in the US, a 22.9 percent increase from last year. This is particularly impressive when considering that, despite the XC60’s well-rounded nature, it’s relatively outdated compared to some of its European competitors.
There’s speculation that Volvo may shift even more of its manufacturing to the United States. Recent reports suggest the company could begin building the larger XC90 at the South Carolina plant, though Volvo hasn’t confirmed those plans.
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