With the inauguration of its new plant in South Carolina, Volvo now makes vehicles in the U.S., starting with the new S60 premium midsize sedan. The automaker plans to add production of the next-generation XC90 large crossover in 2021.

Volvo has invested $1.1 billion in the U.S. and the plant will be the sole global source of the S60—the first car Volvo has ever made in the U.S. Half the sedans built in the U.S. will be exported. It underscores Volvo's belief in the future of the sedan and the importance of the U.S. market for this car.

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The S60 begins production this fall with a lineup that includes the front-drive T5 with a turbocharged 2.0-liter four-cylinder gasoline engine good for 250 hp. The all-wheel-drive T6 offers a turbo- and supercharged 2.0-liter. There will be two plug-in hybrids, but the U.S. only gets the more powerful T8 Twin Engine AWD plug-in where the gas engine is both turbo- and supercharged for a combined 400 horsepower. We do not initially get the T6 Twin Engine AWD plug-in hybrid that gets a combined 340 hp but it could come to the U.S. market in the future when there is demand for a lower-cost plug-in. A mild hybrid with a 48-volt system is expected next year.

There will not be a diesel engine available with the S60 for any market in keeping with Volvo's commitment to have all vehicles electrified starting in 2019 with a goal of 1 million pure EVs or 25 percent of sales by 2025.

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Like its midsize counterparts, the V60 and XC60, the S60 rides on the Scalable Product Architecture (SPA) and has many of the same features. That includes City Safety with Autobrake that brakes to avoid an oncoming collision and recognizes pedestrians, cyclists, and large animals. Optional Pilot Assist will steer, brake, and accelerate up to about 80 mph and has been upgraded to provide better cornering. Other safety systems include Run-off Road Mitigation, Oncoming Lane Mitigation, and other steering assistance systems as well as optional Cross Traffic Alert with Autobrake.

The S60 gets Volvo's Sensus Connect infotainment system that can be seen across all its new cars and is compatible with Apple CarPlay, Android Auto, and 4G. The large touchscreen has many menus with vehicle functions and connectivity.

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For those who want to add more performance to their T8 plug-in, the Polestar electric performance division is offering Polestar Engineered which upgrades the wheels, brakes, suspension, and engine control unit, boosting combined horsepower to 415. The Polestar version has Brembo brakes and Ohlins shock absorbers and software tuning of the engine for the extra horsepower.

The S60 can be obtained through the Care by Volvo subscription service where there is no down payment, just a flat fee of $775 a month for 24 months, for those who don't want to buy or lease. Care by Volvo was launched in November and is also available for the XC40 and V60. It covers pretty much everything but gas.

T5 models start between $36,795 and $43,895, and T6 models will run from $41,295. The T8, only offered in R-Design and Inscription trims, will start between $55,395 and $56,395. Orders begin today for all S60 models other than the Polestar Engineered version, which will be available for order on June 28. Pricing for that model has not yet been announced but Polestar CEO Thomas Ingenlath said it will likely be an additional $2,000.

The Polestar Engineered model will be available in limited quantities initially, about 200, in the first year to reduce complexity in the ramp-up of a new plant building a new vehicle. It was a concession Polestar made to be able to offer the higher performance S60 from the time of launch, Ingenlath said. The plant can make more in the future if there is demand. No special stations on the assembly line were required to add the Polestar Engineered models.

The new Volvo plant is located about 40 miles west of Charleston. The site decision was made back in 2014 in recognition of the importance of the North American market, and the automaker broke ground in 2015. During construction it was known as "Volvo Project Thor." The idea of building in Mexico was briefly considered and quickly discarded by CEO Hakan Samuelsson. Building in the U.S. puts Volvo closer to its customers and will help the automaker better understand the market. "To build the right car for the U.S. customer you have to be local," he said. And investing in the U.S. will encourage dealers to invest in their businesses.

Initially it will employ 2,000 workers—1,500 will be in place by the end of the year—who will make 60,000 S60s a year, half of them for export, on two shifts initially. The plant's capacity is 150,000 vehicles a year with ample land and 2.3 million square feet of buildings. Volvo expects another 2,000 workers to join when it adds the XC90. The site includes the plant, test track, training center, and an office building for about 300 people who work in R&D, purchasing, quality, and sales. Stamping comes from supplier Gestamp but could be brought in-house in the future.

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The plant, which was just inaugurated, is making about 175 preproduction S60s a week with Job 1 of saleable sedans scheduled for Sept. 1. The current S60 is made in China and Ghent, Belgium. Production will be phased out of Ghent, but China will continue to make long-wheelbase versions of the S60 for that market.

When the XC90 is added, it will need its own tooling in the body shop but will share the paint shop and final assembly line with the S60.

There is ample land to add a third vehicle in the future but that is not the immediate plan.

South Carolina is also home to BMW in Spartanburg and the Mercedes-Benz Sprinter van plant.

In 2010 China's Zhejiang Geely, owned by billionaire Li Shufu, bought Volvo from Ford for $1.5 billion and the automaker has flourished under the new ownership.

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