Volvo Confirms New XC90

Volvo has confirmed that it will be producing the long-rumored next generation XC90 in their plant in Charleston, South Carolina. The plant opens in 2018, with the production of the next-generation S60, and will begin producing the XC90 in 2021. This will be a new incarnation of their family-friendly SUV.

New Volvo Plant New Volvo Car

The opening of the South Carolina plant will create 4,000 jobs. Volvo has already invested $1.1 million into the plant, with an annual production capacity of 150,000 vehicles. This location will also house Volvo’s R&D department, purchasing department, and quality control department, as well as their Southern regional sales team in a new company campus.

“The continued expansion of our plant in South Carolina is another significant commitment to the U.S. market,” Volvo CEO Håkan Samuelsson said about the plant’s development. “The plant in Charleston will serve both the U.S. and international markets and forms a strong foundation for our future growth in the U.S. and globally.”

Volvo XC90 Produced in the USA

Volvo–and the US car market at large–was still focused on sedans when the corporation made the decision to introduce their US-produced S60. Now, the market for SUVs is booming. However, the new plant’s capacity simply wasn’t big enough for the current incarnation of the XC90. The current XC90 is produced in plants in Sweden and China, but consolidating the brand’s SUV production makes sense for the next-generation model. However, it’s unclear whether Volvo plans to cease production of future models of the XC90 abroad in the future, or whether it will continue producing the SUV at all three plants.

The 2018 XC90 is a spacious crossover SUV, which combines the hauling capacity of an SUV with the interior space and flexibility of a wagon. It has a storage capacity of over 18 cubic feet, along with safety features such as electronic drive assist and a partial self-driving system.