Volvo may take up to two years to expand US production to avoid tariffs

Sweden's Volvo Cars, controlled by Chinese carmaker Geely, will need up to two years to expand its US car production to avoid hefty import tariffs, CEO Hakan Samuelsson told daily Dagens Nyheter (DN) on Friday.

Volvo Cars is one of the most exposed carmakers to US President Donald Trump's car tariffs as it imports most of its hybrid and electric models from Europe.

A Volvo spokesperson declined to comment when contacted by Reuters.

Samuelsson told DN it would not be sustainable for the company in the long term to sell European-made cars in the US at a 27.5% tariff, and importing from the company's Chinese plants was "impossible" given the much higher US tariffs on China.

"In the short term, within one to two years, it will be about selling the cars we have," he said, adding the situation would put pressure on profit margins but customers will also have to pay more.

Samuelsson last week said Volvo Cars was working towards increasing production in the US as a response to tariffs.