Volvo announces that it intends to spend Half a Billion Dollars on a brand new USA facility.

Volvo Cars to build new factory in US

• Volvo Cars becomes a truly global car maker with industrial presence in its three key continents
• Industrial investment of around USD 500 million in a new car plant
• Underlines Volvo’s commitment to the US market

Volvo Cars announced today that it is to build a brand new manufacturing facility in the US, fulfilling its ambition to be a truly global car maker, investing around 500 million dollars 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 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 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.

“The US Volvo dealers are delighted with this announcement,” said Chip Gengras, chairman of the Volvo dealer council in the US. “It clearly illustrates Volvo's long term commitment to the US 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 neighbourhoods. As such, the new plant provides a boost for the economy of the state in which it is located. 

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.