Volvo has officially announced the decision to build their first American plant in South Carolina.
The new manufacturing facility, located in Berkeley County, will have an initial production of around 100,000 cars, with the first vehicles expected to roll off the assembly line in 2018. Volvo will build cars based on the SPA modular platform, like the XC90 and the upcoming -60 series models.
“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.
Berkeley County was chosen because of its easy access to international ports and infrastructure but also because of its “attractive investment environment and experience in the high tech manufacturing sector”.
The new plant is expected to create 4,000 new jobs in the longer term, with Volvo investing a total of $500 million, and production destined not only for the North American market but for export too. Volvo wants its US sales to reach 100,000 cars in the medium term.
Volvo has already two plants in Europe and two in China. With the addition of the South Carolina plant, the Swedish company will be able to manufacture on three continents, further helping them to reach their medium term expansion goal to double global sales.
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