Published

Volvo Cuts Car Shipments Between China and U.S.

Volvo Car Corp. says the U.S.-China trade war has prompted it to cancel plans to ship S60 sedans to China from its new U.S. factory in South Carolina.
#economics

Share

Volvo Car Corp. says the U.S.-China trade war has prompted it to cancel plans to ship S60 sedans to China from its new U.S. factory in South Carolina.

Volvo also will stop sending XC60 crossover vehicles from China to the U.S. and sharply reduce shipments of S90 large sedans from China to the American market.

Anders Gustafsson, who heads Volvo’s U.S. operations, tells reporters at a Automotive Press Assn. lunch in Detroit that the company’s entire U.S. output of X60 cars will now be marketed locally.

The moves will enable Volvo to avoid U.S. tariffs of 25% on cars from China and a Chinese tax of 40% on cars from the U.S. Says Gustafsson, “We know what we need to do.”

RELATED CONTENT

  • On Global EV Sales, Lean and the Supply Chain & Dealing With Snow

    The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future

  • VW Warns of Higher Costs to Develop EVs

    CEO Herbert Diess says the €20 billion ($23 billion) Volkswagen AG has budgeted to electrify its entire vehicle lineup won’t be enough to meet that goal.

  • Porsche Doubles EV Target for 2025

    Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.

Gardner Business Media - Strategic Business Solutions