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$500 Million for First US Volvo Plant

Location not yet decided

Karla Sanchez
Mar 31, 2015

After years of striving to become a true global brand, Volvo has announced that it has invested $500 million into what will become the company’s first-ever U.S. plant.

Although the automaker doesn’t know exactly where the plant will be located yet, that hasn’t stopped the excitement over the new opportunity. “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, Volvo's Chief Executive and President, in a press release. The new plant not only underscores how important the U.S. market is to Volvo, but it also puts the company in a more appropriate position to meet and ultimately exceed its sales target of 100,000 cars a year in the U.S. The all-new 2016 XC90 should help in reaching that goal as well, considering the First Edition sold out of the 1927 individually numbered units within the first 47 hours it was on sale.

2016 Volvo XC90 T6 rear three quarter in motion Photo 2/4   |   2016 Volvo XC90 T6 Rear Three Quarter In Motion

The addition of the U.S. plant means Volvo will have factories in all three of its key continents, with the others being Europe and China. The Chinese plants are relatively new, with locations in Chengdu, Daqing, and Zhangjiakou, and just late last year, the automaker added 1300 workers at its Torslanda factory (pictured at right) in Sweden to prepare for the new XC90. Volvo says the new factory will also accelerate the introduction of a build-to-order system.

Volvo currently has a short list of potential locations for the new U.S. plant, but we won’t find out where the new factory will set up shop until a later date, when we’re also sure to find out how big the facility will be and how many jobs it will create.

Source: Volvo

Volvo torslanda plant v60 body painted Photo 3/4   |   2015 Volvo XC90 Torslanda Plant Expansion
2016 Volvo XC90 T8 front view in motion 02 Photo 4/4   |   2016 Volvo XC90 T8 Front View In Motion 02
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