Volvo to launch hybrid SUV for North American market, built in South Carolina starting in 2029.
Second-gen hybrids expected to remain in Volvo’s lineup through 2040 due to slower EV transition.
U.S.-built model will be exported globally, excluding China, to boost plant utilization.
Volvo plans to build a new family-oriented hybrid vehicle at its South Carolina plant, highlighting a significant directional change. The North American-focused product is the result of a slower-than-expected transition to full electrification. Production is expected to begin in 2029.
Volvo CEO Håkan Samuelsson described the upcoming model as a “bigger-size car” designed primarily for the U.S. market. The vehicle will be hybrid-powered, intended to meet demand in areas where electric vehicle infrastructure remains limited. “Many places in America are still not ready for full electric cars. This would be a very good solution,” Samuelsson said.
Though designed for North American consumers, the model will also be exported to other global markets, excluding China. The company’s assembly facility in Berkeley County, South Carolina, which has been producing globally designed models for a decade, will be tasked with building the new hybrid.
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“This factory is a strategic asset. We are building cars in America. This is also our, sort of, home market and we need to use the factory much more,” Samuelsson said.
The new vehicle will be part of Volvo’s second-generation hybrid lineup. These models are being developed to serve regions where electric vehicle adoption has been slower, including the U.S., inland China, and parts of Eastern and Southern Europe.
Although Volvo remains committed to its goal of becoming an all-electric automaker, company leadership now acknowledges a longer transitional period. “Four years ago, I thought the electrification would be faster. We need to be a bit more pragmatic and cannot just turn the company into 100 percent battery-electric vehicle company,” Samuelsson said.
The company originally anticipated phasing out hybrids by 2030, but is now planning to continue offering them through at least 2040.
Source: Newsweek
