The CEO of Swedish carmaker Volvo, owned by China’s Geely, stated that the company will need up to two years to expand its car production in the United States to avoid the hefty tariffs recently announced by Trump.
Volvo imports most of its hybrid and electric models from Europe, making it one of the automakers most affected by US tariffs.
Samuelsson told a Swedish newspaper that it will not be possible for the company in the long term to sell European-made cars in the United States with a 27.5% tariff.
As for the company’s factories in China, this is impossible due to the much higher US tariffs on China, according to Volvo’s CEO.
“In the short term, within one to two years, the focus will be on selling the cars we have,” Samuelsson added, adding that this situation will put pressure on profit margins, but customers will also have to pay more.
Mr. Samuelsson stated last week that Volvo Cars is expanding its production in the United States in response to the tariffs. This decision aims to ease the financial pressure on the company and its customers.
It is worth noting that most European automakers are suffering, with major companies such as Stellantis and Volkswagen announcing urgent plans to find quick solutions to avoid as much loss as possible.
In the future, automakers may be forced to halt exports to the United States due to the exorbitant tariffs, which are making profit margins insufficient to cover production costs.
The European Union is studying the impact of the tariffs on the auto sector, awaiting the decisions made by European politicians. The current situation threatens significant losses for European and global companies.
