Volvo Vehicles mentioned on Wednesday it plans to slash 5% of its workforce at its South Carolina plant as a consequence of financial uncertainty fueled by President Trump’s tariffs.
About 125 of the Charleston plant’s 2,500 staff will probably be impacted, the corporate mentioned.
“This is in response to challenging macro conditions. Our aim is to support impacted employees and protect as many jobs as possible,” a Volvo Vehicles spokesperson advised The Publish.
The automaker, nonetheless, mentioned it remained dedicated to including 4,000 jobs within the state, a objective it set in 2018 when the manufacturing facility first opened.
It’s additionally nonetheless trying to enhance output on the Charleston facility sooner or later, the corporate added.
In its quarterly earnings report final week, Volvo Vehicles mentioned it plans to decrease prices by $1.88 billion. This determine doesn’t embrace the newly-announced layoffs.
Like most others within the sector, Volvo Vehicles – which is owned by Geely Holding, a Chinese language automotive conglomerate – is going through a big hit from Trump’s tariffs.
Whereas its largest manufacturing facility is positioned in Sweden, the carmaker additionally has three enormous amenities in China.
In early April, Trump slapped a 25% tax on international car imports, and adopted up with the identical fee on auto components final week – which is predicted to impression just about all vehicles within the US, since even these made within the nation comprise components from different nations.
Just a few days earlier than the tax on auto components took impact, Trump introduced “a little bit of help” for automakers.
The auto tariffs, he mentioned, received’t stack on prime of different duties he has imposed, like these on metal and aluminum, or the hefty charges on Canada and Mexico.
Trump’s 145% tariff on China, nonetheless, will proceed to use on prime of the auto tariffs.
However the US stays a key a part of the automaker’s long-term technique, a Volvo Vehicles spokesperson advised The Publish.
Whereas its Charleston manufacturing facility has the capability to supply 150,000 vehicles annually, it presently solely makes the EX90 electrical SUV and Polestar’s mannequin 3, with most Volvo vehicles imported from Europe.
In April, the corporate mentioned it has offered 1,316 EX90s within the US to this point this yr.
Volvo Vehicles has almost 43,000 staff world wide, together with 29,000 in Europe, about 10,000 in Asia and three,000 within the Americas, based on its 2024 annual report.
With Publish wires
