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US revival comes alongside strong growth in China and Western Europe
Volvo Cars is to build a brand new manufacturing facility in the US, investing around US$500.0 million in a new plant and underscoring its long term commitment to the US market. The Company has drawn up a short list of potential locations and full details of 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 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 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 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.
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.