Volvo Cars will shift production of its XC90 luxury SUV to an assembly plant it will build outside of Charleston, South Carolina, from its current production line in Sweden, the company has announced.
Volvo has been building the XC90 at its Torslanda Plant.
The move comes as part of Volvo's expansion of the South Carolina plant, which had initially been slated to build the next generation of its S60 sedan. Volvo has increased its investment in South Carolina to $1.1 billion from the $550 million initially announced in 2015.
The next-generation XC90 will be built in Berkeley County, S.C., starting in 2021.
With the move, Volvo is creating 3,900 new jobs at the Charleston-area plant.
Volvo credits its redesign of the XC90 for the 2016 model year as helping drive sales for the brand to 83,000 units in 2016 from 56,000 units in 2014.
Volvo is expanding production capacity in other global markets as well. The company is now building a third plant in China. It operates two plants in Europe.