Volvo shifts production to electric vehicles, moving key models to the US

Volvo is undergoing a major manufacturing transformation, shifting its focus toward electric vehicles and away from internal combustion engines. The company plans to move the production of its popular XC60 and XC90 models from Sweden to the United States. This shift marks the end of a 62-year era of internal combustion engine production at the Torslanda plant in Gothenburg, which will now focus exclusively on electric models.

This transition poses significant employment risks in Sweden, with concerns for approximately 6,500 workers. While Volvo notes that new specialized roles may emerge, the shift to electric vehicles generally requires fewer labor operations and components. To increase efficiency and reduce costs, Volvo is consolidating its production platforms, moving from two platforms to a single one dedicated to mid-sized electric models.

The new generation of electric vehicles will be led by the EX60, the first model built on the SPA3 platform. This new architecture utilizes megacasting and cell-to-body technology to integrate the battery pack directly into the chassis, reducing overall vehicle weight. The EX60 is designed to compete with premium electric SUVs from manufacturers such as Mercedes-Benz, BMW, and Audi.