Bloomberg Tax
Feb. 6, 2023, 1:47 PM

Volvo May Invest in US If Europe’s Green-Tech Push Falls Short

Rafaela Lindeberg
Rafaela Lindeberg
Bloomberg News

Volvo AB is joining a growing roster of manufacturers considering moving investments to the US if Europe doesn’t bolster aid in response to Joe Biden’s landmark green subsidy push.

The Inflation Reduction Act, which promises roughly $370 billion in clean-energy subsidies, will strongly increase demand for emissions-free trucks in the US, said Volvo Chief Executive Officer Martin Lundstedt.

“If nothing happens in Europe, we will have to think about where we’re going to put the initial investments to scale up capacity for some of the technologies in the value chain,” Lundstedt said in an interview. “This is not ...