Volvo Cars has announced that they will be building a new factory in the United States, expanding their manufacturing to three continents. Around $500 million will be invested in a new vehicle assembly plant in one of a handful of a short list of candidate locations.
This will be Volvo’s fifth manufacturing facility, working alongside the two in Europe and two in China it already operates.
Along with this new factory announcement comes the announcement that Volvo will completely renew its product lineup over the next four years, utilizing a new modular vehicle technology and, of course, world-first safety tech.
“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.”
Volvo Cars has been doing business in the US since 1955 and this decision to invest in the US highlights Volvo’s long term commitment to the US market. 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 and play an integral part in Volvo’s global manufacturing footprint, serving the US and export markets while helping limit the impact of currency variations.