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Volvo Shuffles Production To Avoid Tariffs

Nov. 11, 2018 5:35 PM ET by Jared Rosenholtz Industry News / 2 Comments How will these moves affect US production? With the recent tariff threats, foreign automakers without a sizable presence in the United States have been in a bit of a panic. Take Volvo, for example. The Swedish automaker was forced to move production of its XC60 from China back to Europe and is currently seeking an exemption on Chinese built models. General Motors has also asked for tariff exemptions for its Chinese built Buick models, though it doesn't seem like the Trump administration is willing to grant them. Volvo will now have to make further changes to its production plans according to Automotive News. The plans have been carefully formulated to dodge tariffs where possible. Volvo Volvo's first move was to cancel plans to export the US-built S60 sedan to China just six months after the company's South Carolina plant began producing cars. This may sound like good news - fewer cars being exported to China - but it means fewer American exports as well as fewer jobs at Volvo's factory in South Carolina. Instead of shipping cars to China, Anders Gustafsson, Volvo's US president, says the plant will mostly focus on supplying cars for the US market. Volvo Volvo Volvo The Swedish automaker will also stop importing Chinese-built XC60 crossovers and dramatically cut back on importing Chinese-built S90 sedans to the US. We aren't sure how this will affect the company's supply chain, though we assume Volvo's factories in Europe will pick up the slack. Shifting production like this must be a logistics nightmare and it can not be good for Volvo's profit outlook. Gustafsson said "We'll go at this change not with a smile, but we know what we need to do. We have a global manufacturing structure that helps us maneuver in these tough waters." Volvo Volvo Volvo

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Volvo S60 Volvo XC60 Jared Rosenholtz Editor-at-Large After graduating with an MBA, Jared pursued his love of cars by becoming an automotive journalist. An internship with CarBuzz grew into his current position as Editor At Large. Jared now spends most of his time evaluating new vehicles and chasing the latest news stories in the automotive industry. When he’s not attending Cars & Coffee events on the weekend, Jared loves to watch NFL football and cruise around with the top down in his German convertible. Contact Jared @Carsnbites @jar_rosenholtz LoginSign Up Home News Features Car Reviews Car Advice 2021 CarBuzz Awards New Cars Used Cars Future Cars Compare Cars Sell My Car Car Dealerships Buy Here Pay Here Used Car Reviews Popular Tags Cars # Video # TOP # Spy Shots # Reveal # Rumor # Auto Show # Supercar # Tuning # Car Culture # Industry News # Motorsport Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Make Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Car Type SUVs Crossovers Sedans Coupes Trucks Sports Cars Wagons Vans Hatchbacks Convertibles Small Cars Luxury Cars Electric Cars Hybrid Cars Future Cars By Price Up to $15K $15K - $25K $25K - $35K $35K - $45K $45K - $55K $55K - $75K $75K - $100K $100K - $200K $200K - $300K Above $300K Back To Top