This Auto CEO Sees a Future With More Chinese Parts in American Cars

This Auto CEO Sees a Future With More Chinese Parts in American Cars

Congress is debating a legislative ban on carmakers from China

Volvo Cars, a Swedish carmaker owned by a Chinese company that has a factory and material sales in the U.S., is no stranger to straddling geopolitical divides.

But it is endeavoring its biggest balancing act yet. After years of challenges, with more pain on the way, Volvo’s plan for reviving its fortunes rests on a new generation of cars that will lean in to both its Chinese ownership and the American consumer—even as Congress debates a legislative ban on Chinese cars.

In a recent interview, veteran Chief Executive Håkan Samuelsson told The Wall Street Journal that Volvo wants to lower costs by sharing more parts with Geely, its majority owner, while also protecting cars sold in the West from being accessed by China.

Our cars in China will be much more Geely-based, while Europe and America will have locally developed Western software systems.

But in mechanical parts, why not? Why shouldn’t cars in Europe have the same brake caliper or the same air-conditioning compressor as cars in China? And if we can find such common components, we can lower the cost of the hardware.

And those Chinese brake calibers could also be used in the U.S.?

Yes, they could very well be. But we will be totally open with that and not in any way jeopardize the ICTS regulations. (Those are rules introduced by the Commerce Department in 2025 to restrict the use of Chinese software and connectivity technology in cars.)

How did you get an exemption to the ban in those rules on Chinese-owned carmakers?

We needed to show how we treat and handle data coming from connected cars—how do we protect the national interest of the U.S., how does it work, who has access to data from the car, who has access to software and so on. It was a very detailed discussion to show that in this respect we are definitely not a Chinese company. When we had proven that, then we got approval from the Commerce Department.

Were you surprised that your Geely-family sister brand Polestar didn’t get approval?

The idea with the American initiative, I think, is to make it difficult for new Chinese players to come in. Volvo was in America long before we were Chinese. In that respect I hope they see Volvo in another context than any Chinese newcomer, including Polestar, which is still probably more of a Chinese newcomer.

Congress is debating a legislative ban on Chinese carmakers. Do you think Chinese cars will be on American roads within the next decade?

They could be, but I think [Chinese automakers] really need to be good citizens and build the cars in America, develop the cars in America, use American suppliers. Then I see no reason why they should not be on the market, exactly as Toyota is now on the streets of America.

Have President Trump’s tariffs changed how you view your U.S. business?

Not really. When I came back to this company more than a year ago, I was disappointed that we were not utilizing our Charleston factory more. We put a lot of bets in building EVs there, which has shown to be giving the factory too little volume.

We cannot end up having a factory and not using it. Even without Trump’s measures I would still argue: Why don’t we use the factory we have? Can we build more cars there that are more suited to American consumers?

Tell us more about your plans to invest in your U.S. factory.

The first step is to bring in the XC60. That will happen soon after the new year. But I would say we also need other cars for Americans.

If you look into what Americans need: number one is more multifuel capability. It cannot be only EVs, it should be multifuels, to leave that choice to the consumer. That is one thing I think we need if we want to come closer to American customers.

The other one is really roomy bigger cars. Americans love big SUVs. So why don’t we listen to that?

Does that mean you will be creating more jobs in South Carolina?

If we are fully utilizing the factory, in the medium term, that will create jobs.

Where do you think the American consumer is today?

Very depressed! The consumer willingness to buy is very low. If you are not confident, the car is probably one of the things you say: Let’s keep this car another year. Fuel prices are probably also contributing to this negative confidence, and everything that happens in the Middle East.

How do you see the future of EVs in the U.S. without tax credits?

Incentives can only help in the beginning. They cannot drive a long-term change.

Electric cars are better cars. They are cheaper to drive. They are quiet. They are more agile. The only drawback with an electric car is you need to charge it at home, or fast-charge it when you’re out on the road. And that’s the only limitation, but I think one which is being invested away as we speak.

In countries where electricity is rather expensive and gas rather cheap, it is a problem. Gas is still rather inexpensive in the U.S.!

Why is the car industry so tough right now, and what comes next?

The world is deglobalizing: new tariffs, tech restrictions. One-size-fits-all doesn’t work anymore. You need to go to the regions and listen to the customers and deliver what the customers want. Otherwise we will not be global brands anymore.

A second reason why it’s tough is that we are in the middle of a technology shift, going from gasoline to electricity, and having much more software in the cars.

The third is we are getting new competitors. We had this business to ourselves if you go back 50 years. Then Japanese manufacturers came in, then Koreans. Now the Chinese also want to take a part of the cake.

This interview has been edited and condensed for clarity.

Appeared in the October 7, 2026, print edition as ‘Volvo Sees More Chinese Parts in U.S. Cars’.

Your upcoming cars will share more mechanical parts with your owner, Geely, while having different software in China and the West. How will that work?