Volvo plans new manufacturing plant in USA
Volvo Cars has today announced its plans to build a new US$500 million manufacturing facility in the United States. Actual venue of the plant has yet to be finalized although potential locations have been shortlisted.
When it opens, the new USA plant will give Volvo an industrial footprint in three key continents around the world. The company currently operates two plants each in Europe and China.
Development of the new plant is part of Volvo’s ongoing transformation strategy involving 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,” said Håkan Samuelsson, Chief Executive and President.
“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,” he continued.
With the new plant in place, Volvo believes it will have the capacity to meet and ultimately surpass its volume targets in the US, which is set at 100,000 units per annum in the medium term. It will facilitate easier manufacturing of custom-spec vehicles for the market and will help limit the impact of currency fluctuations for exports to the America continent.
