Volvo will build cars in the US.
Volvo XC90 T8 Hybrid Image: Volvo Car Group |
According to the Swedish car maker, owned by Chinese automaker Geely as well as the Chinese government, the new plant is expected to begin production in 2018.
The plant location has not yet been decided but Volvo has been in discussions about incentives with state governments in Kentucky, North Carolina and South Carolina. There has been no mention of which models will be built.
US sales of Volvo vehicles last year accounted for just 12% of the marques total volume, despite the country once being the car maker's most significant market. Volvo's CEO Håkan Samuelsson said in a statement. “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 recently stated expectations of continued global sales growth helped by Chinese and European markets as well as the US. The company was boosted by the launch of its new XC-90, the first model released under full Chinese ownership and including the new 'twin-engine' T8 petrol/plug-in hybrid version.