Volvos are made in Sweden, right? Everyone knows that. Only they're also made in Belgium, in China, and soon in South Carolina.
That's where the Swedish automaker has announced it will build its first assembly plant in the United States, demonstrating its commitment not only to the North American market but also to meeting its ambitious growth targets.
Construction on the plant is projected to begin this fall at a site in Berkeley County, not far from the picturesque southern metropolis of Charleston. The project will involve a $500-million investment on the part of Volvo and its parent company Geely, and is slated to begin producing vehicles in 2018.
Initial capacity will be pegged at around 100,000 units annually, which is coincidentally the number of units Volvo aims to sell in the US in the near future. (The plant will also export vehicles to other markets.) Last year Volvo sold just 56,366 units in the United States, almost 8 percent less than it sold the previous year.
Volvo has yet to announce just which models it will manufacture locally in South Carolina, however the S60 and XC60 currently rank far and away as the most popular models in the US market, with the new XC90 expected to figure large once production ramps up.
Related Video:
That's where the Swedish automaker has announced it will build its first assembly plant in the United States, demonstrating its commitment not only to the North American market but also to meeting its ambitious growth targets.
Construction on the plant is projected to begin this fall at a site in Berkeley County, not far from the picturesque southern metropolis of Charleston. The project will involve a $500-million investment on the part of Volvo and its parent company Geely, and is slated to begin producing vehicles in 2018.
Initial capacity will be pegged at around 100,000 units annually, which is coincidentally the number of units Volvo aims to sell in the US in the near future. (The plant will also export vehicles to other markets.) Last year Volvo sold just 56,366 units in the United States, almost 8 percent less than it sold the previous year.
Volvo has yet to announce just which models it will manufacture locally in South Carolina, however the S60 and XC60 currently rank far and away as the most popular models in the US market, with the new XC90 expected to figure large once production ramps up.
Related Video:
Volvo Cars selects South Carolina for its first American plant
Volvo Cars, the premium car maker, has chosen South Carolina as the location of its new USD500m factory, highlighting the attraction of the United States as a location for high technology manufacturing and providing a significant boost to South Carolina's economy.
The new facility will have initial annual production of around 100,000 cars and be located in Berkeley County, close to Charleston.
It will make latest generation Volvo models for sale in the United States and for export. Construction will begin in early autumn 2015, with the first vehicles expected to roll off the assembly line in 2018.
Once completed, Volvo will be able to manufacture cars on three continents, underscoring its position as a truly global car maker. It already operates two plants in Europe and two in China.
The new US plant forms part of an ambitious medium term expansion plan to double global sales, boost market share and lift profitability.
"This new global industrial footprint and a complete product renewal forms the foundation for our growth and profitability targets," said Håkan Samuelsson, president and chief executive.
An important factor in Volvo Cars' renaissance will be the US market. Volvo Cars has been doing business in the US since 1955 and has a medium term target to sell at least 100,000 cars a year.
"Building a plant in the US is a reflection of Volvo Cars' commitment to the US and the key role the US plays in our growth objectives," said Lex Kerssemakers, senior vice president Americas.
The decision to choose Berkeley County was taken as a result of its easy access to international ports and infrastructure, a well-trained labour force, attractive investment environment and experience in the high tech manufacturing sector.
Volvo Cars estimates that the plant will employ up to 4,000 people in the longer term. It has been estimated that the multiplier effect of a car plant means that it can create between 5 and 7 new jobs for every job at a plant. On top of that, factories have beneficial effects on many more aspects of the local economy, from taxation income to consumer spending.
"The US remains one of the most dynamic economies in the world and Volvo Cars believes strongly in the benefits of investing and contributing to the markets in which it seeks to sell cars," said Mr Kerssemakers.
Nikki Haley, Governor of South Carolina, said: "By bringing $500 million in new investment and 4,000 jobs to this community, Volvo's presence and commitment to Berkeley County and the state will be felt for decades to come. We are proud to have this global leader in car manufacturing join and strengthen South Carolina's automotive industry."
Volvo Cars, the premium car maker, has chosen South Carolina as the location of its new USD500m factory, highlighting the attraction of the United States as a location for high technology manufacturing and providing a significant boost to South Carolina's economy.
The new facility will have initial annual production of around 100,000 cars and be located in Berkeley County, close to Charleston.
It will make latest generation Volvo models for sale in the United States and for export. Construction will begin in early autumn 2015, with the first vehicles expected to roll off the assembly line in 2018.
Once completed, Volvo will be able to manufacture cars on three continents, underscoring its position as a truly global car maker. It already operates two plants in Europe and two in China.
The new US plant forms part of an ambitious medium term expansion plan to double global sales, boost market share and lift profitability.
"This new global industrial footprint and a complete product renewal forms the foundation for our growth and profitability targets," said Håkan Samuelsson, president and chief executive.
An important factor in Volvo Cars' renaissance will be the US market. Volvo Cars has been doing business in the US since 1955 and has a medium term target to sell at least 100,000 cars a year.
"Building a plant in the US is a reflection of Volvo Cars' commitment to the US and the key role the US plays in our growth objectives," said Lex Kerssemakers, senior vice president Americas.
The decision to choose Berkeley County was taken as a result of its easy access to international ports and infrastructure, a well-trained labour force, attractive investment environment and experience in the high tech manufacturing sector.
Volvo Cars estimates that the plant will employ up to 4,000 people in the longer term. It has been estimated that the multiplier effect of a car plant means that it can create between 5 and 7 new jobs for every job at a plant. On top of that, factories have beneficial effects on many more aspects of the local economy, from taxation income to consumer spending.
"The US remains one of the most dynamic economies in the world and Volvo Cars believes strongly in the benefits of investing and contributing to the markets in which it seeks to sell cars," said Mr Kerssemakers.
Nikki Haley, Governor of South Carolina, said: "By bringing $500 million in new investment and 4,000 jobs to this community, Volvo's presence and commitment to Berkeley County and the state will be felt for decades to come. We are proud to have this global leader in car manufacturing join and strengthen South Carolina's automotive industry."
Sign in to post
Please sign in to leave a comment.
Continue