Volvo aims to take advantage of the recent trade deal firmed between China and Canada, which will allow for a quota of 49,000 China-produced electric vehicles to enter the country annually.
Matt Girgis, the Swedish automaker’s country manager in Canada, told Automotive News that while “it’s still unclear about how the whole approval process is going to work,” it is “something we’re looking into.”
Volvo, owned by China’s Geely Holding Group, currently manufactures electric vehicles at facilities in Torslanda, Sweden, Chengdu and Luqiao, China, and South Carolina, USA.
Before the former government — led by Justin Trudeau — imposed a 100% tariff on Chinese EVs to align with the United States, Volvo imported three fully electric and hybrid models produced in China.
These included two of its most successful models: the fully electric EX30, which is its cheapest EV; and the XC60 plug-in hybrid (PHEV), Volvo‘s best-selling model of all time.
Volvo restructured its global production strategy in response to North American tariffs over the past two years.
The EX30, for example, is currently imported to Canada from Europe, allowing the company to keep the electric model in the lineup, priced from CA$49,950 (US$36,500).
Despite that, Girgis has told the media outlet that the automaker is open to altering its strategy again if it is allocated a portion of the import quota set in the deal.
The executive warned, however, that “it takes a long time even to just shift production over.”
While he admitted he doesn’t “really know how long it’s going to take,” he said “it’s not going to be tomorrow.”
EX90 from China, Not the US
Additionally, Girgis admitted that Canada’s renewed relationship with China could allow Volvo to reintroduce models in its Canadian lineup — not only those produced in China, but also those that were traditionally shipped from the US.
Canada currently faces a 50% tariff in the United States, after the Trump Administration imposed an additional 35% duty on top of an already-existing 15% rate.
Despite the USMCA, a free trade deal signed by the two countries — alongside Mexico — not all vehicles and auto parts are exempt from these duties.
Volvo removed the larger EX90 SUV from its Canadian lineup last year, as the country countered the US tariffs with a 25% rate on American-built vehicles.
The model is currently produced in South Carolina. However, it is also manufactured in China, Girgis said, which “could allow it to come back” under the new quota system.
Canadian Lineup
Volvo currently offers three fully electric models in Canada, including the EX30, the EX40 and the EC40 crossover SUV.
The EX40 and EC60 both start from CA$63,600, equivalent to US$46,500.
The company’s website also displays the newly launched EX60, the highly anticipated battery electric (BEV) version of the XC60.
While pricing details for the first have not yet been revealed, the XC60 PHEV is priced from CA$57,600 (US$42,100).
The hybrid lineup also includes the XC90, for which prices start at CA$76,950 (US$56,300).
