Volvo Cars said on September 23 that it would expand an existing factory in South Carolina to produce a hybrid vehicle by the end of the decade. The New York Times said the Swedish carmaker is seeking to cater to American tastes and avoid tariffs.

Volvo had previously announced it would produce a midsize sport utility vehicle next year, available in hybrid and electric versions, in addition to the two electric vehicles Volvo and sister company Polestar currently produce at the plant in Ridgeville, near Charleston, South Carolina. 

The fourth vehicle announced on September 23 will be a newly designed hybrid, reflecting the popularity of that technology in the United States. The Times said the car is part of the company’s plans to increase sales in the United States 60% in the next five years, from about 125,000 vehicles last year. 

Hakan Samuelsson, the chief executive of Volvo Cars, told the Times that President Trump’s tariffs also played a role in Volvo’s decision to expand the factory. Cars imported from Sweden and other European Union countries will be subject to a 15% tariff, down from 27.5%, under an agreement with the U.S. announced in August. But, as with many other significant trade deals Trump has struck with trading partners, the details still have to be worked out.