Another victim of tariffs
As tariffs continue to cause uncertainty in the automotive industry, Volvo is cutting jobs and raising prices. Though tariffs have yet to be implemented by the United States government, Volvo is being proactive. Like many automakers, the automaker is taking steps to navigate an uncertain future, both in the short and long term.
Volvo plans to cut approximately 3,000 jobs as part of its “cost and cash action plan,” which, in part, aims to eliminate redundancies across the company. The automaker says it will eliminate approximately 1,000 consultants across its organization, 1,200 roles at offices in Sweden, and roughly 800 positions in its remaining global markets. The cuts represent about 15 percent of Volvo’s total global workforce.
Zac Palmer
Selling the EX30 from $34,950 now “almost impossible”
When Volvo announced the EX30, it boldly claimed that the small SUV would arrive for $34,950—an incredible price point for any electric vehicle. Since that announcement, the U.S. government has imposed tariffs on electric vehicles (EVs) made in China, prompting Volvo to only import a limited run of EX30 Twin Motor Performance models starting in December 2024 to satisfy early preorder demand from some of the automaker’s most enthusiastic and loyal customers. To avoid tariff charges, Volvo delayed the introduction of the car to the U.S. until production began at its factory in Ghent, Belgium, which it now has.
Volvo CEO Hakan Samuelsson said on Friday that selling the automaker’s Belgium-made EX30 stateside for the original $34,950 price tag would be “almost impossible” at this point. The only EX30 currently available in the US is the $46,195 Twin Motor Performance model in Plus and Ultra trim levels. According to a Volvo source, all future EX30s bound for the U.S. will stem from the Ghent plant.
Most Volvo cars sold in the United States are imported from Europe. Samuelson, hopeful the EU and the U.S. can find common ground on trade, said, “I believe there will be a deal soon. It could not be in the interest of Europe or the U.S. to shut down trade between them.”
Zac Palmer
Tariffs scare more than Volvo
Tariffs are rattling several European automakers, not just Volvo. BMW recently halted its EV efforts in the United States, VW put a freeze on pricing to ease consumer fears, Nissan is drastically cutting back on production, Hyundai is cautioning dealerships about potential price increases, and Jaguar Land Rover has halted shipments of vehicles into the United States.
Even the threat of tariffs has automakers on high alert. The industry is built on the back of a global supply chain, and creating a fully U.S.-based manufacturing and supply chain to avoid tariffs is likely impractical and impossible.
Zac Palmer
Final thoughts
Automakers are worried, but consumers are the ones paying the price—literally. Volvo has a large factory in Charleston, South Carolina, and says it’ll ramp up production there. However, the plant doesn’t currently manufacture fully electric vehicles, so we can expect to see more hybrids available on Volvo lots soon. Tariffs also interrupt the push toward full electrification.
