Volvo is tapping dealer wisdom to form its long-term tariff strategy

In a market full of noise, Volvo’s playing it cool—powered by what it hears from the ground up. (2 min. read)

Author

Ash Savage
April 17, 2025

Volvo Cars U.S. and Canada President Mike Cottone

After 70 years and 5 million cars sold in the U.S.—Volvo says it’s not about to lose its cool over a trade scuffle.

Driving the news: Earlier this week at the New York Auto Forum, Volvo Cars U.S. and Canada President Mike Cottone pulled back the curtain on how the Swedish brand is navigating tariff uncertainty—with a not-so-secret weapon: dealer feedback.

In Cattone’s words: “You do get a lot of phone calls. But what I love about the dealer body is that I’m 23 years [in], and we’ve got some dealers who’ve been around 50, 60 years—several generations. And you can use them.”

So what’s the vibe from Volvo’s U.S. dealer network?

Mostly: stay calm and stick to the basics—keep cars in stock and selling, make sure service departments are running smoothly, and keep used units a priority.

Why it matters: In a market full of noise, Volvo’s playing it cool—powered by what it hears from the ground up. But that’s just one lever it’s pulling behind the scenes.

Between the lines: Volvo is also chalking up a broader, long-term tariff strategy—one that includes potential production shifts and pricing flexibility.

  • The company is considering adding a new model at its South Carolina plant, which currently has capacity for 150,000 vehicles.

  • It’s also evaluating how quickly it could ramp up local production and adjust supply chains—batteries, transmissions, engines—to build more where it sells.

  • On the pricing front, Cottone says Volvo’s ready to dial incentives up or down as needed to stay competitive and keep demand flowing.

What they’re saying: “We're gonna take a very consistent approach, watch the marketplace, and make sure that we stay here in the U.S. for another 70 years. [Tariffs] are going to be another part of the automotive industry chapter story,” Cottone said.

Bottom line: Tariffs may test the road ahead—but Volvo’s tuned in and ready to adjust. No panic, just smart plays.

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