Volvo Automobile USA will cease importing the S90 sedan over a rising commerce struggle between the US and China, Automotive Information reviews.
Constructed at Volvo’s Daqing, China meeting plant, the S90 was already a sluggish vendor earlier than tariffs had been carried out. The corporate bought simply 1,364 examples within the US final yr.
“It’s a low-volume automotive for the US,” an unnamed insider acquainted with the matter instructed Automotive Information. “Moderately than cope with [the tariffs], they’re simply going to chop it out.”
We have reached out to Volvo for affirmation, and to see whether or not the S90 will stay on sale in different markets.
As of April 9, the Trump administration levies a 125-percent import tariff on Chinese language items, together with autos. As Auto Information factors out, that is 5 instances increased than the 25-percent tariff charged to autos imported from anyplace else on the earth. For Volvo, that might make the S90—already an getting older automobile in a shrinking section—an unattainable promote in America.
Photograph by: Volvo
As an alternative, Auto Information‘ insider says Volvo will flip its focus to its largest sellers: crossovers just like the XC90, the XC60, and the XC40. The Swedish model can even reportedly lower incentives on present choices to assist bolster funding for future tariff bills. Nonetheless, it may be an uphill battle for the corporate, as 96.8 p.c of its vehicles bought in America had been imported from overseas.
The S90’s premature demise within the US is the most recent in a string of main disruptions for the overseas automotive market. Lotus, JLR, VW, and Audi have all paused shipments to the US to additional assess tariff impacts, because the Trump administration appears content material to regulate the foundations relying on the climate that day.
We suspect the S90 will not be the final sufferer of those tariffs. Issues are solely going to get stranger from right here.
