The VEA variants have been under preparation for about two years at Volvo's engine plant in Skövde, Sweden. The company has invested heavily in the plant's overhaul – about two billion kronor, or close to $300 million US. All of the engines are being built on the same line, which makes overall production more efficient. The Volvo press release (available below) says that the in-house operation is a vital part of the automaker's strategy for independence.
The VEA is replacing eight engine architectures on three different platforms, with the first new engines being introduced this year and continuing through 2015. Nearly 20,000 engines are scheduled to be produced in 2013, with a target rate of 2,000 units per week by the end of the year. By the fall of 2013, Volvo expects to have fitted the new engines to the Volvo S60, V60, XC60, V70, XC70 and S80 models.
Like the electrification of a few Volvo models, the objective of the new four-cylinder variants is to offer good energy economy, low environmental impact and immense driving pleasure at an attractive price, Derek Crabb, Volvo's vice president powertrain engineering said.
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