Volvo Cars has chosen South Carolina as the location of its new US$ 500 million (Rs 3,158 crore) factory.
11 May 2015 | 3256 Views | By Autocar Professional Bureau
Volvo Cars has chosen South Carolina as the location of its new US$ 500 million (Rs 3,158 crore) factory. 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 ...
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Volvo Cars has chosen South Carolina as the location of its new US$ 500 million (Rs 3,158 crore) factory. 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 later this year, with the first vehicles expected to roll off the assembly line in 2018.
Once completed, Volvo which already operates two plants in Europe and two in China will be able to manufacture cars on three continents.
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.
“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.”
For CY2014, Volvo Cars’ global sales reached a record 465,866 cars, an increase of 8.9 percent versus 2013.