Volvo CEO: "If Trump Administration Raises Tariffs, We Will Increase US Production"

Jim Rowan CEO Local Interview
Reviewing Global Production Map Reorganization
"Electric Vehicle Transition Progressing Rapidly"

Jim Rowan, CEO of Volvo Cars, mentioned that the company is ready to increase production in the United States at any time in response to the Trump administration's second term tariff hikes on automobiles.

Following last year's shift of major model production from China to Europe due to the European Union (EU)'s increased tariffs on Chinese electric vehicles, Volvo is now reviewing a global production map reorganization to respond to the U.S. tariff measures.

On the 5th (local time), Jim Rowan, CEO of Volvo Cars, met with domestic reporters for an interview at the ES90 launch event in Stockholm, Sweden. Photo by Volvo Cars

On the 5th (local time), CEO Rowan stated this during the ES90 unveiling event held in Stockholm, Sweden, in an interview with domestic reporters. He said, "If the U.S. tariff increase on imported cars is confirmed, we will have to consider shifting production to the U.S. instead of Europe," adding, "Since we have already built a production plant in South Carolina, U.S., and have sufficient operational capacity, we can respond quickly."

The Trump administration's second term has mentioned imposing import tariffs on automobiles of up to 25%, raising concerns that production in Europe may also be hindered. Currently, European-made cars are subject to a 2.5% tariff when exported to the U.S. CEO Rowan said, "We actually have to wait and see whether the tariff increase will be confirmed," but added, "Even if the tariff increase happens, we have sufficient countermeasures."

Previously, Volvo relocated the production plant of its compact electric sport utility vehicle (SUV) EX30 from China to Belgium, Europe, last year. This was after the EU finalized the imposition of countervailing duties of up to 43.5% on Chinese electric vehicles.

On the 5th (local time), Jim Rowan, CEO of Volvo Cars, introduced the new car at the ES90 launch event in Stockholm, Sweden. Photo by Volvo Cars

Furthermore, he emphasized that although the pace of Volvo's electric vehicle transition strategy has slowed, its direction remains unchanged. He said, "Due to a lack of charging infrastructure, the preference for plug-in hybrids is increasing," but added, "What cannot be overlooked is that the transition to pure electric vehicles is progressing faster than any other technology."

CEO Rowan also highlighted Volvo's strength in offering various powertrains, including battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV), and mild hybrid electric vehicles (MHEV). He noted that providing customers with multiple options has enabled record-breaking global sales over the past two years.

He also stressed the importance of software-defined vehicles (SDV), another future car strategy challenge. He said, "The most important change in the transition to future cars, beyond electrification, is 'core computer technology,'" explaining, "In the past, the car was at its highest specification at the time of delivery, but that is no longer the case. Thanks to over-the-air (OTA) software updates, the car can always be kept up to date."

Volvo ES90. Provided by Volvo Cars

On this day, Volvo unveiled the ES90, a flagship electric sedan that embodies the latest brand SDV technology. Volvo equipped the ES90 with NVIDIA's 'Dual NVIDIA DRIVE AGX Orin' chips, making it the smartest car in the brand's history. The powerful core computing performance has improved computational capability by more than eight times compared to the previous generation, enabling up to 500 trillion operations per second.

Additionally, it features an advanced sensor system composed of one LiDAR, five radars, seven cameras, and twelve ultrasonic sensors. This allows the vehicle to detect objects and movements beyond human vision, identifying hazards on the road. When sensors detect danger, the high-performance computer processes the data and immediately takes action on the vehicle.

Moreover, the application of 800V technology enhances charging convenience. The vehicle can travel up to 700 km on a single charge, and with 350 kW fast charging, it can secure a driving range of 300 km in just 10 minutes.

Volvo ES90. Photo by Woosuyeon

Volvo developed the ES90 targeting the Chinese market. The crossover style design, which combines the advantages of sedans, fastbacks, and SUVs, is also a strategy aimed at the Chinese market. CEO Rowan said, "We created an entirely new genre that combines the strengths of sedans and fastbacks, targeting the Chinese market, which is always looking for new models," and added, "We expect it to be very popular in China and across Asia."