Volvo Cars will build a manufacturing facility in the US, fulfilling its ambition to be a truly global car maker, investing around US$500 million in the plant and underscoring its long term commitment to the US market. The company has drawn up a shortlist of potential locations; full details of the location of the new factory and the size of the investment will be announced at a later date.
The move will give Volvo an industrial footprint on three key continents. It has two factories in Europe, two in China and the future plant in the US, which will be part of the Americas region that was announced 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 new modular vehicle technology, the development of world-first safety technologies, a new design language and a range of class-leading connectivity services.
Volvo Cars cannot claim to be a true global car maker without an industrial presence in the US. Today, we became that. The US is an absolutely crucial part of our global transformation and today’s announcement makes it perfectly clear that Volvo is in the US to stay.—Håkan Samuelsson, Chief Executive and President
Volvo Cars has been doing business in the US since 1955. The new plant also means Volvo will be able to meet and ultimately exceed its volume targets in the US, where it has a medium-term ambition to sell 100,000 cars a year. It will help accelerate the introduction of build-to-order in the US as well as being an integral part of Volvo’s global manufacturing footprint, serving the US and export markets, and also help limit the impact of currency variations.