Polestar 3 production consolidated to the US to keep Volvo factory busy

The Volvo plant located near Charleston, South Carolina, is set to ramp up its activities significantly this year. Formerly dedicated to the production of the S60 sedan, this facility has transitioned in recent years to focus on larger electric SUVs, including the EX90 and the closely related Polestar 3. In a recent announcement, Volvo and Polestar confirmed that the Charleston site will be the exclusive production location for the Polestar 3, a model that was previously also manufactured in Chengdu, China. Håkan Samuelsson, the CEO of Volvo Cars, emphasized that consolidating the global production of the Polestar 3 in Charleston will create efficiencies for both companies. He highlighted the importance of this facility, stating that it plays a crucial role in their overall manufacturing strategy. "The US market is vital for Volvo Cars, supporting our aspirations for growth and serving as a strategic site for meeting regional and export demands," Samuelsson added. Despite facing a tough year in 2025, where Volvo saw a 7 percent decline in sales, Polestar has experienced a remarkable turnaround. The company, which became an independent entity from Volvo's performance division in 2017, reported a 34 percent increase in sales during the same period. This shift to increase Polestar 3 production in South Carolina appears to be a strategic decision in line with their growth trajectory.