Volvo suspends EX90 production in the US due to component shortages

Volvo Cars has been forced to halt production of its new EX90 electric crossover at its US plant due to a shortage of components.

Here's What We Know

Versions of the electric EX90 for Western markets are produced at Volvo's US plant in Ridgeville, South Carolina. However, production is now suspended due to disruptions in the component supply chain, reminiscent of the chaos that carmakers had to endure during the COVID-19 pandemic. Back then, chip shortages forced a number of companies to temporarily halt production or produce cars without some technology options.

Volvo did not respond to enquiries about which components were missing or how long the production shutdown would last. However, customers waiting for EX90 deliveries are advised to keep in touch with their dealers for updates on order status, AutoNews reported.

The EX90 has already faced several production hurdles in its short history. Its planned debut in 2023 was pushed back to 2024 due to software issues with the Lidar system, and when the crossover did go on sale, its partially automated driving system was still not working despite equipment installed from the factory.

Earlier this month, Volvo confirmed it was laying off 125 of its 2,500 employees at the Ridgeville plant due to the Donald Trump administration's volatile trade policies, tariffs on imported goods and "changing market conditions" - which is a euphemism for slowing sales of electric vehicles.

Nevertheless, the automaker says it still plans to eventually create 4,000 new jobs in South Carolina. Volvo recently stopped production of the S90 sedan there, so the facility has plenty of spare capacity and could be home to the XC60 crossover and EX30 compact electric SUV. New CEO Hakan Samuelsson warned last week that he may be forced to stop exporting the Belgian-made EX30 to the U.S. if the U.S. and EU don't reach a trade agreement to mutually reduce tariffs.

Source: Automotive News