Volvo to Build US-Focused Hybrid at South Carolina Plant

Volvo Cars has announced that its manufacturing facility in South Carolina will be the exclusive global production site for a new, large-scale hybrid vehicle. The luxury sedan, the Volvo S90, is set to have a significant portion of its production dedicated to the US market, signaling the company’s commitment to hybrid technology as an intermediate step toward an all-electric future.

The S90 model will feature a plug-in hybrid powertrain, allowing it to operate on electric power for shorter trips while retaining a powerful gasoline engine for longer journeys. This hybrid approach is seen by the company as a key strategy to bridge the gap for customers transitioning from traditional combustion engines to fully electric vehicles.

The decision to anchor the production of this new hybrid model in South Carolina solidifies the plant’s role as a vital hub in Volvo’s global manufacturing network. The facility, which currently produces the EX90 electric SUV, is expected to increase employment and strengthen the state’s position in the evolving automotive industry.

Hybrid Sales Trend in the US

The focus on the hybrid market comes as sales data shows continued strong consumer interest in these vehicles in the United States.

According to recent data, the US hybrid market has seen robust growth:

  • Annual Sales: In recent years, annual sales of hybrid and plug-in hybrid vehicles have consistently surpassed one million units. For example, in 2023, sales of these vehicles reached approximately 1.2 million units, representing a significant portion of the total new vehicle market.
  • Market Share: While all-electric vehicles (EVs) are growing rapidly, the combined segment of hybrids and plug-in hybrids has maintained a substantial market share, often accounting for 7% to 9% of all new vehicles sold in the US.

Volvo’s investment in hybrid production at its South Carolina facility aligns with the continued consumer demand for vehicles that offer a balance of fuel efficiency and range, positioning the company to capitalize on a crucial segment of the US auto market.

Sign up for our Sunday Spectator. Delivered to your inbox every Sunday, with all the news from the week.