Volvo Cars disclosed that it is to build a brand new manufacturing facility in the U.S., fulfilling its ambition to be a global car maker, investing around 500 million dollars in a new plant and underscoring its long term commitment to the U.S. market.
The company has drawn up a short list of potential locations. Full details regarding the location of the new factory and the size of the investment will be announced at a later date.
The move means Volvo will be a global car manufacturer with an industrial footprint on all three key continents. It has two factories in Europe, two in China and the future plant in the U.S., which will be part of the Americas region that was previously disclosed in January. These developments form part of Volvo’s transformation that has been ongoing since 2010.
The transformation plan involves the creation of a global industrial footprint, the complete renewal of Volvo’s product range over the next four years, the introduction of a modular vehicle technology, the development of safety technologies, a new design language and a range of class-leading connectivity services.
Volvo Cars has been doing business in the U.S. since 1955 and the decision to invest in the U.S. highlights Volvo’s long term commitment to the U.S. market. The new plant also means Volvo will be able to meet and ultimately exceed its volume targets in the U.S., where it has a medium term ambition to sell 100,000 cars a year. It will help accelerate the introduction of build-to-order and play an integral part in Volvo’s global manufacturing footprint while helping limit the impact of currency variations.
Volvo’s U.S. revival comes alongside strong growth in China and Western Europe. With plans to increase sales on all three continents, Volvo will be able to meet its medium term sales and profitability targets and strong growth in future.
Published in the May 2015 Edition of American Recycler News