Volvo’s automotive division has announced that it will close its Uddevalla plant in Sweden in 2013 once it takes sole ownership of the factory. “The low volumes in the Uddevalla plant do not justify continued production”, said Volvo CEO, Stefan Jacoby.
The Uddevalla factory is currently run by Volvo and Pininfarina under a joint-venture agreement that was established in 2005 for the production of the C70 hardtop-convertible. The plant employs 600 workers and in 2010, production reached 10,000 units, which represents only 65% of its full capacity.
“The Uddevalla plant delivers cars with a very high quality”, said Jacoby. “However, a car manufacturer of Volvo’s size can’t, from a financial point of view, justify a plant that manufactures one single model in the volumes we have today.”
Last March Volvo and Pininfarina agreed to terminate their joint venture in 2013, leaving Volvo as the sole owner of the plant. Even though production will cease, people employed at Uddevalla will be offered work at other Volvo facilities.
