Volvo announces plans to build $500 million facility in U.S.

(March 30, 2015) Volvo Cars announced today that it will build a new manufacturing facility in the U.S., fulfilling its ambition to be a truly global car maker, investing around $500 million 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 is now 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 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 U.S.. Today, we became that,” said Håkan Samuelsson, chief executive and president. “The U.S. is an absolutely crucial part of our global transformation and today’s announcement makes it perfectly clear that Volvo is in the U.S. to stay.”

Volvo Cars has been doing business in the U.S. since 1955 and this 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 in the U.S. and play an integral part in Volvo’s global manufacturing footprint, serving the U.S. and export markets while helping limit the impact of currency variations.

“The U.S. Volvo dealers are delighted with this announcement,” said Chip Gengras, chairman of the Volvo dealer council in the U.S. “It clearly illustrates Volvo's long term commitment to the U.S. market.”

 The new plant will create new jobs, providing security for its employees and their families. Car plants are also known to have significant multiplier effects on their local areas, injecting funds into neighborhoods. As such, the new plant provides a boost for the economy of the state in which it is located.