Volvo Plans to Build $500 Million Plant in US

Chinese maker eschews Mexico for America.

by on Mar.30, 2015

A Volvo XC90 rolls down the assembly line at the maker's plant in Daqing, China. A similar set up is coming to the U.S.

Volvo, the first Chinese automaker to export a vehicle to the U.S., announced it plans to build a $500 million somewhere in the U.S. Officials declined to elaborate on where.

“Volvo Cars cannot claim to be a true global carmaker without an industrial presence in the U.S. Today, we became that,” said Hakan Samuelsson, CEO and president, in a statement.

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“The U.S. is an absolutely crucial part of our global transformation and today’s announcement makes it perfectly clear that Volvo is in the U.S. to stay.”

The company has a short list of locations, but won’t release details until a later date.

There’s a bit of irony in the move given the former Swedish, now Chinese-owned maker will begin sending stretch versions of its S60 sedans to the U.S.

Making its debut at the 2015 North American International Auto Show, the S60 Inscription adds another 3.4 inches of rear legroom to the current S60 model, taking it from cramped to what Volvo claims is best-in-class space.

(Volvo to introduce first Chinese-made car to U.S. For more, Click Here.)

Set to reach U.S. showrooms this coming summer, the long-wheelbase model has been in production for more than a year at the Volvo plant in Chengdu, not far from the headquarters of its Chinese parent, Geely. It’s the first plant Volvo has operated outside Europe.

(Click Here for details about Volvo naming Keemakers to top U.S. post.)

The stretched sedan will come in two versions, a Premier model and a Platinum edition. Both will get leather seating, a sunroof and built-in navigation. The top-line Platinum model will add a Harman Kardon premium audio system, Xenon lights and other features. Both variants will be offered with Volvo’s T5 engine and all-wheel-drive.

(To see more about Volvo’s plans to put 100 autonomous vehicles on the road, Click Here.)

The announcement is likely a welcome one considering the recent history of plants being built in Mexico rather than the U.S. Daimler AG announced it was investing $500 million at its Charleston, S.C., plant to build Sprinter commercial vans earlier this month.

Prior to that, Toyota, Volkswagen AG and General Motors Co. all announced they would be spending at least $500 million each on new facilities in Mexico to build new vehicles.

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2 Responses to “Volvo Plans to Build $500 Million Plant in US”

  1. Jorge says:

    While the U.S. jobs created are appreciated, I have a feeling this is just another Chinese purchase of the U.S., in a methodical steal acquisition.

  2. Eric Lindquist says:

    Volvo will create a win-win-win opportunity for USA-Sweden-China with XC90 and PIHE !

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