Volvo has confirmed that production of the S60 is set to be discontinued at the end of June.
The compact sedan was the first Volvo built in the United States when the latest generation was launched in 2019.
Since then, fewer than 80,000 have been delivered in the U.S.
Volvo also builds the model in China and Indonesia for sale in other markets.
The automaker is converting the Ridgeville, S.C. factory to build its new EX90 three-row electric SUV.
Production of the electric EX90 began in early June and deliveries are expected to begin in the second half of this year.
The three-row SUV starts at $77,990 for a 402 hp version with an estimated 300 miles of driving range, while a 509 hp performance model will also be offered with an Ultra trim topping out at $87,340.
With U.S. assembly, the EX90 is eligible for the $7,500 federal tax credit on EV purchases if it meets all of the materials sourcing requirements.
U.S. production for the EX90 could also play a role in Volvo’s plans to import the upcoming EX30 compact electric vehicle from China. The model has a starting price of $34,995, not including destination fees, but may be subject to a special 100% tariff the Biden administration has announced for Chinese-made electric vehicles. A “drawback” program exists that allows automakers to offset import tariffs by exporting U.S. made goods to China. General Motors currently uses this to reduce the 25% tariff charged on the China-made Buick Envision SUV.
Volvo has not formally announced its plans for the EX30 in the wake of the new policy. However, The Sunday Times reported that the automaker is considering moving some EX30 production to Belgium to avoid new European tariffs on Chinese goods. European-built electric vehicles don’t qualify for U.S. tax credits on purchases, but the credit can be applied to leases.
