Volvo Adds XC90 Crossover to U.S. Production Plan

Volvo Car Corp. says the $1.1 billion assembly plant it is building in Charleston, S.C., will produce the company’s next-generation XC90 crossover vehicle in addition to the S60 sedan.

The facility, Volvo’s first in the U.S., will begin making S60s a year from now and add the XC90 in 2021. The latter model is the brand’s best-selling vehicle in the U.S. Volvo currently sources the XC90 from its plant in Torslanda, Sweden.

Much of the XC90 output in South Carolina will be for the U.S. market. But Volvo says a “considerable” proportion of output will be exported via the port of Charleston.

The South Carolina project was unveiled in 2015 as a $500 million plant to make sedans. Last week, Charleston’s Post and Courier reported that Volvo intended to double its investment in the facility, install a second assembly line and add a second model.

The expansion will increase the facility’s annual capacity to 150,000 units and boost employment to 3,900 workers. Volvo also plans to enlarge the office campus that adjoins the factory. The project will add a new office building to house as many as 300 staffers in product development, purchasing, quality and regional sales.