Volvo is signing up for a growing roster of brands considering going investments to the United States if Europe won’t bolster assist in reaction to President Joe Biden’s landmark eco-friendly subsidy press.

The Inflation Reduction Act, which claims approximately $370 billion in cleanse-vitality subsidies, will strongly raise desire for emissions-totally free trucks in the United States, mentioned Volvo Chief Executive Officer Martin Lundstedt.

The EX90, a battery-powered SUV manufactured by Volvo, during its launch event in Stockholm, Sweden, on Nov. 9, 2022.

“If practically nothing takes place in Europe, we will have to think about exactly where we are likely to set the preliminary investments to scale up capacity for some of the systems in the benefit chain,” Lundstedt explained in an job interview. “This is not a menace, it can be driven by customer desire and the place volumes will speed up.”

The IRA has fueled issues that Europe will slide at the rear of in the race to overhaul industries amid rising fees in the region. Sweden’s Northvolt mentioned in November it can be thinking of postponing its prepared manufacturing facility in northern Germany and alternatively investing first in North The usa.


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