Volvo Cuts Car Shipments Between China and U.S.

November 08, 2018 at 3:20 PM

Volvo Car Corp. says the U.S.-China trade war has prompted it to cancel plans to ship S60 sedans to China from its new U.S. factory in South Carolina.

Volvo also will stop sending XC60 crossover vehicles from China to the U.S. and sharply reduce shipments of S90 large sedans from China to the American market.

Anders Gustafsson, who heads Volvo’s U.S. operations, tells reporters at a Automotive Press Assn. lunch in Detroit that the company’s entire U.S. output of X60 cars will now be marketed locally.

The moves will enable Volvo to avoid U.S. tariffs of 25% on cars from China and a Chinese tax of 40% on cars from the U.S. Says Gustafsson, “We know what we need to do.”