Volvo investing $500m on its first US factory
Volvo is to spend $500m on its first manufacturing factory in the States, giving the Swedish carmaker an industrial footprint on all three of its key continents.
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16:46 24/04/24
The Swedish auto group, which has yet to decide on the location of the new plant, said the US investment is "fulfilling its ambition to be a truly global car maker".
The move swiftly follows an announcement by German rival Daimler which said earlier this month it would be investing the same amount in a Mercedes-Benz van factory in South Carolina.
“Volvo Cars cannot claim to be a true global car maker without an industrial presence in the US. Today, we became that,” said president and chief executive Håkan Samuelsson.
Samuelsson said that the US is an "absolutely crucial part" of Volvo's transformation plan which has been ongoing since 2010 to create a global industrial footprint. It already has two factories in Europe and two in China.
As part of its transformation plan, Volvo is looking to completely renew its product range over the next four years, introduce a new modular vehicle technology, develop new safety technologies and connectivity services.
Volvo has been doing business in the States since 1955 and the group hopes that the new plant will help it to at least meet its medium-term target of selling 100,000 cars a year. Sales fell 8% to 56,000 units in 2014.
The company said in a statement: "Volvo’s US 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 clear a path towards even stronger growth in future."