Volvo Struggles for Profit in U.S. EV Market
Volvo's Chief Commercial Officer says the American market has proven difficult for profitability, prompting a shift toward localized production.
Updated on Nov. 2, 2026 in Electric Vehicles
Live Poll
Are you planning to buy a new vehicle in the next year?
During its third-quarter earnings call in late October 2026, Volvo's Chief Commercial Officer said the U.S. has proven to be a difficult market in which to find profitability. Volvo has pulled the EX30 and EX40 battery-electric vehicles from the U.S. market, and Polestar, its sister brand, has exited the country.
Why it matters
Volvo committed heavily to electrification just as the American market reversed course on EVs, and its leadership acknowledged it underestimated how tariffs would affect its U.S. business. The shift matters for U.S. buyers weighing electric options and for the company's domestic manufacturing footprint.
Volvo's South Carolina plant is operating at 20% capacity while building the EX90, and U.S. consumer sentiment sits at a 50-year low. The company has not disclosed specific U.S. profitability figures, and the source does not give a timeline for recovery.
The players
Volvo
Volvo is a Swedish automaker whose global lineup includes the EX30, EX40, EX60 and EX90 electric vehicles, and it has been pursuing a full electrification strategy.
Hakan Samuelsson
Hakan Samuelsson is the chief executive officer of Volvo, who said the company should have anticipated the tariff risk.
Polestar
Polestar is an electric performance car brand and sister company to Volvo that has exited the U.S. market.
The details
Volvo's CEO Hakan Samuelsson said the company should have recognized that tariffs were a real possibility. Volvo's EX60 electric SUV has proven to be a manufacturing challenge, and Americans waiting for it will wait longer than originally anticipated as Europe is prioritized. In response, Volvo is localizing more production in the U.S. and plans a second multi-powertrain vehicle for its South Carolina plant by the top of the decade.
Timeline
Late October 2026: Volvo's third-quarter earnings call, where the profitability comments were made.
By the top of the decade: Volvo's planned second multi-powertrain vehicle for its South Carolina plant is expected.
Roadmap
Volvo committed to electrification as American buyers pulled back, and the U.S. is electrifying more slowly than the rest of the world. The company's retreat from several battery-electric models and its pivot toward localized, multi-powertrain production reflects the gap between European-led EV ambitions and U.S. demand.
U.S. buyers waiting for Volvo's EX60 should expect longer delivery timelines, since European markets are being prioritized. Volvo's withdrawal of the EX30 and EX40 from the American market narrows the electric options available to shoppers considering a Volvo battery-electric vehicle.
The takeaway
Volvo's experience shows that electrification plans built around one market's assumptions can collide quickly with shifting policy and tariffs. For U.S. buyers, the practical question is which electric models will remain available and how long delivery will take.
Further reading
For broader context on the shift in American buying habits, see Electric Vehicles.
Source note: This article includes information reported by InsideEVs.
Live Poll
Are you planning to buy a new vehicle in the next year?
