Volvo Cars Pegs Expansion to $66,000 Made-in-Sweden SUV

Volvo Car Group, which has come to symbolize Swedish durability since its founding in 1927, is sticking to its Scandinavian roots with its first model since being acquired by Chinese owners four years ago.

Rather than chase low wages, Volvo will maintain engineering and assembly of the new XC90 sport-utility vehicle in the carmaker’s hometown of Gothenburg. The overhaul of the brand’s flagship model, which was unveiled today near Stockholm, is part of a plan to spend about half of the manufacturer’s four-year development budget of $11 billion in Sweden.