STOCKHOLM, April 11 (Reuters) - Sweden's Volvo Cars
, which is controlled by Chinese auto maker Geely
, will need up to two years to expand its U.S. car
production in order to avoid hefty import tariffs, CEO Hakan
Samuelsson told daily Dagens Nyheter (DN) on Friday.
Volvo Cars is one of the most exposed automakers to U.S.
President Donald Trump's auto tariffs as it imports most of its
hybrid and electric models from Europe.
A Volvo spokesperson declined to comment when contacted by
Reuters.
Samuelsson told DN it would not be sustainable for the
company in the long term to sell European-made cars in the
United States at a 27.5% tariff, and that importing from the
company's Chinese plants was "impossible" given the much higher
U.S. tariffs on China.
"In the short term, within one to two years, it will be
about selling the cars we have," he said, adding the situation
would put pressure on profit margins but that customers will
also have to pay more.
Samuelsson last week said Volvo Cars was working towards
increasing production in the U.S. as a response to tariffs.