Today, The Wall Street Journal reported that Volvo Car Corporation, owned by China based Geely Holding Group plans to invest $500 million in the construction of a new vehicle production and assembly facility in the United States.
According to this report, Volvo is making this investment to become closer to its prime North American market, take advantage of attractive labor rates and protect against currency fluctuations. Volvo has had a presence in the U.S. market since 1957 but has struggled in recent years to establish market-share growth. The plant will reportedly build vehicles utilizing a new “SPA” platform that serves the basis of several new models including the Volvo XC90 SUV.
The report further indicates that the auto maker is considering sourcing its new facility in a handful of U.S. states and will make a final site decision in about a month. Volvo had considered a new plant investment in Mexico but opted instead for a U.S. site.
What is even more interesting is that Volvo’s CEO indicates that the new factory could eventually serve as an avenue for its parent, Geely to distribute cars in the United States.
Hello Everyone,
This is an update to our March 3oth commentary regarding reports that Volvo had plans to open a new production facility in the United states.
Last week came the announcement that Volvo elected to locate its new auto production plant in the state of South Carolina. The company will break ground later this year for a $500 million factory adjacent to a major interstate highway near the Port of Charleston. The new plant is expected to generate up to 4000 jobs for the local area.
The State of South Carolina and local officials offered a reported $120 million in financial incentives including funds to develop a new industrial auto park. South Carolina’s state-owned electric utility will purchase a 6800 acre site to create the auto park which Volvo will occupy.
Volvo joins existing global automotive producers BMW and Mercedes Benz in locating auto production in this U.S. state.
Bob Ferrari