Volvo to Build Flagship SUV at $1.1 Billion South Carolina Plant

Volvo Cars plans to assemble the next generation of its flagship model, the XC90 sport utility vehicle, in the U.S. in a step toward its “build where you sell” strategy.

The plant Volvo is constructing near Charleston, South Carolina, will begin making Volvo’s top-selling U.S. model in 2021, the Gothenburg, Sweden-based automaker said in a statement. That will be in addition to the S60 sedan set to begin production when the factory opens next year.

Bringing output of the SUV to South Carolina from Sweden will roughly double planned factory employment to almost 4,000 and investment to $1.1 billion. Total ...