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Volvo Cars may take up to two years to expand US production to avoid tariffs, CEO tells daily DN
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Volvo Cars may take up to two years to expand US production to avoid tariffs, CEO tells daily DN
Apr 11, 2025 8:17 AM

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.

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