The Volvo XC40, Volvo’s smallest SUV, is in such demand that Volvo will start production in China of the XC40 to help meet that demand.
The Volvo XC40 is not just a cracking little SUV, it’s arguably the default choice in its sector, offering the most appealing combination of abilities, with its style, practicality and comfort all a part of its appeal. It’s also not a German SUV with an emphasis on ‘handling’ and ‘sportiness’, something we’ve always seen as oxymoronic for an SUV (with a few exceptions).
That combination of abilities has seen sales for the XC40 exceed even Volvo’s most optimistic expectations, and they’ve flogged more than 100,000 already. But that’s presenting a few problems.
With Trump’s tariff games weighing heavily on Volvo, they’re busy shuffling production around their plants to ease the burden, but that’s left Ghent, where Volvo builds the XC40 (as well as other Volvos), under a lot of pressure. So XC40 is off to China.
Initially it seems China will build the XC40 alongside Ghent, but all logic says all production will move to the Volvo Plant in Luqiao, south of Shanghai, in time as it already builds other cars based on Volvo’s CMA platform, like the Lynk & Co 01, and with plans to build the Polestar 2 there too.
With the XC40 range about to be expanded with the addition of the XC40 Twin Engine plug-in hybrid and electric XC40, it’s a sensible move by Volvo, leaving Volvo’s plants in Sweden, USA and Daqing in China to build the bigger Volvos based on the SPA platform.