Skip to content
Subscriber Only
Business
Pursuits

Volvo Cars Plans $500 Million U.S. Factory to Revive Sales

Updated on

Volvo Car Group plans to build its first auto factory in the U.S. in a $500 million investment to revive sales following a plunge in demand over the past decade.

The plant will start production in 2018 with targeted capacity of 100,000 to 120,000 autos that will use underpinnings of the company’s new XC90 sport-utility vehicle, Lars Wrebo, head of manufacturing and purchasing, said in a phone interview. The Gothenburg, Sweden-based automaker is in talks with three U.S. states on a possible location.