One of the biggest car manufacturing names in Europe is set to venture into opening their very first assembling plant in the United States. The executives of Volvo Cars stated that such move is vital in their aspirations of boosting sales in the country.
The plant will cost at an estimate of $500 million and will serve as the first of its kind in the whole of North America
Last Monday, high-ranking officials from the Swedish Auto Makers said that they have a shortlist of locations that they are considering to put up the infrastructure, but did not disclose them. The announcement however will take place in the succeeding months of 2015 according to an insider.
Chinese automaker Geely holdings have been overseeing operations of Volvo since it acquired it five years ago. At present, they have two plants in the European continent and another two in China
According to Hakan Samuelsson, the CEO of Volvo, their decision to establish a plant in the United States highlights their company’s long-term commitment to the American market. He added that,
Volvo CEO Hakan Samuelsson said the decision to open a U.S. plant highlights Volvo’s long-term commitment to the U.S. market. He added in a separate statement that, “Volvo Cars cannot claim to be a true global car maker without an industrial presence in the U.S.,”
The Swedish brand has been selling its cars to Americans since the mid-50’s. Despite this, the band encountered several road bumps after its sale to Ford Motor Co. in the latter parts of the 90’s. With the lack of technological innovation, other European brands such as Audi and BMW were able to outpace it in terms of development and sales. Geely purchased Volvo from Ford for $1.8 billion, which is less than half of what Ford paid to acquire it.
Today, Volvo is hoping to regain its old glory by introducing its latest SUV XC90, which wil be available this summer to consumer. Key to the SUV’s new footprint is the integration of the Scalable Product Architecture (SPA), which will support a completely new portfolio of models currently under development from Volvo. The groundbreaking XC90 running gear comes in both efficient petrol and diesel engines. All will be 2.0-litre four-cylinder units and part of the new Drive-E family. The emergence of a bigger manufacturing footprint will also assist in doubling its sales in the U.S. by 100,000 over the next few years.