Following the official announcement made earlier this month, Volvo has formally signed an agreement to locate its first American factory in South Carolina.
Attended by South Carolina Governor Nikki Haley and key public officials in Charleston, the event paves the way for the ground-breaking of a full manufacturing facility in fall 2015.
The new assembly plant will be capable of producing up to 100,000 cars per year, with the first American built Volvos expected to roll off the assembly line in late 2018. The automaker will build vehicles based on its new SPA platform, which underpins the new XC90 and upcoming -60 series models. Volvo estimates that the plant will employ up to 2,000 people over the next decade and up to 4,000 people in the longer term.
For the initial 2,000 direct jobs, more than 8,000 total jobs would be created as a result, according to an economic impact analysis compiled by Dr. Frank Hefner at the College of Charleston. Additionally, the plant would contribute approximately $4.8 billion in total economic output on an annual basis.
Following its inauguration, Volvo Cars will have assembly plants on three continents, as it already operates two plants in Europe and two in China. The new US facility is part of a medium term expansion plan aimed at doubling global sales, boost market share and lift profitability.
In addition to building the plant, Volvo also pledged to preserve 1,500 acres of wetlands with the State of South Carolina to support a “green belt” around the greater Charleston region. The automaker will also work with the local utility to power the factory with renewable energy and reroute storm water “to form ponds that simulate wildlife habitats.”
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