Volvo's Charleston factory in South Carolina will now be the sole production site for the Polestar 3 electric SUV, after the company announced it will shift production from its Chengdu, China facility. This move is expected to generate efficiencies for both Volvo and Polestar, and reflects the companies' confidence in the US plant's capabilities. The shift is also driven by the US's importance as a market for Volvo Cars, where it aims to support its growth ambitions and meet regional and export demands. Volvo's sales fell by 7 percent in 2025, but Polestar saw a 34 percent increase in sales during the same period.
Håkan Samuelsson, Volvo's chief executive, said the move to consolidate Polestar 3 production in Charleston will help generate efficiencies for both companies. The US is a key market for Volvo Cars, both to support its growth ambitions and as a strategic production site to meet regional and export demands. Volvo's decision to focus on its US plant comes as the company looks to expand its presence in the market.
When Håkan Samuelsson says the US is a "very important market" for Volvo Cars, that means the company is betting big on the region's growing demand for electric vehicles. This move by Volvo and Polestar could have significant implications for the global electric vehicle market, and may encourage other manufacturers to follow suit.
