Volvo's factory near Charleston, South Carolina, will become the sole production site for the Polestar 3 electric SUV. The plant, which previously built the S60 sedan, has been manufacturing the Polestar 3 alongside the EX90 since shifting to electric vehicles. Polestar and Volvo announced the consolidation to streamline production and leverage the facility's capabilities.

This move comes as Volvo faces a 7 percent sales decline in 2025, while Polestar experienced a 34 percent sales increase during the same period. The Charleston facility's role has evolved from building sedans to becoming a hub for large electric SUVs. Håkan Samuelsson, Volvo Cars' CEO, emphasized the strategic importance of the US market for both growth and regional production.

The consolidation reflects Polestar's growing importance within the Volvo Group's electric vehicle strategy. By centralizing Polestar 3 production in South Carolina, both companies aim to improve efficiency and meet increasing demand for the electric SUV. The decision also underscores confidence in the Charleston plant's ability to handle increased production volume while maintaining quality standards for both Volvo and Polestar vehicles.