Volvo to Build New Hybrid SUV in South Carolina as Part of Big U.S. Expansion

Volvo is doubling down on its American ambitions. The Swedish automaker announced plans to build a brand-new hybrid model at its Ridgeville, South Carolina plant before the end of the decade. This move signals Volvo’s evolving strategy to combine electrification with real-world practicality, especially for U.S. buyers who still aren’t fully sold on going all-electric.

While Volvo hasn’t released specifics about the vehicle, it’s being described as a “next-generation hybrid model” designed specifically for the U.S. market. Considering the brand’s recent lineup changes, and the fact that sedans and wagons have mostly been dropped from its American offerings, it’s highly likely this new model will be an SUV.

This won’t be the first electrified vehicle to roll off the line in Ridgeville. The plant currently builds the all-electric EX90 and the Polestar 3. Volvo has also confirmed that the XC60 will begin production there in late 2026. That’s significant since the XC60 is one of the brand’s top sellers. For 2026, it received a light refresh, which includes updated styling, new wheels, and a more modern 11.2-inch touchscreen interface.

Volvo’s decision to build another hybrid in South Carolina reflects a larger plan to fully utilize the Ridgeville facility, which has the capacity to produce up to 150,000 vehicles per year. Since opening the plant in 2015, Volvo has invested around $1.3 billion into the site to strengthen its manufacturing presence in the U.S. and reduce its dependence on imports.

Although Volvo has launched several EVs like the EX30 and EX90, the introduction of this new hybrid confirms that the company is not abandoning hybrids anytime soon. Instead, it is taking a more measured approach to electrification by giving customers the benefits of battery-assisted power without the full commitment of going electric. For many American drivers who may not yet have access to reliable charging infrastructure, that middle ground is still very appealing.

There’s also a strategic angle to building more vehicles domestically. Producing cars in the U.S. can help Volvo avoid future tariffs and import-related costs while giving American buyers the added confidence of purchasing a vehicle made closer to home. A hybrid SUV tailored for this market could give Volvo an edge in the highly competitive compact and midsize crossover segments.

For now, Volvo is keeping the specifics under wraps, so we don’t yet know whether the hybrid will be plug-in, mild, or something entirely new. What is clear, though, is that Volvo is treating the U.S. as a key market in its global strategy. With Ridgeville set to produce more models and play a larger role, this factory is becoming a major hub for the brand’s next phase of growth in North America.

We’ll be watching closely as Volvo unveils more information about the upcoming hybrid and how it plans to keep momentum in an evolving market that demands both innovation and flexibility.