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Volvo Expanding U.S. Plant To Build XC90

Volvo Expanding U.S. Plant To Build XC90

Volvo Cars has formally confirmed reports that it is doubling its investment into a new South Carolina assembly plant. The Chinese-owned Swedish automaker is investing an additional $1.1 billion into the facility to produce the next-generation XC90 crossover at the plant.

Along with the additional investment, the company says it is increasing the number of new jobs by an additional 1,900; bringing the total to 3,900. All told, the facility will have an annual production capacity of 150,000 units. It is expected to open its doors in mid-2018 with production of the S60 sedan.

Today’s announcement adds the second-generation XC90 crossover to the U.S. plant, which will start production in 2021. Currently all XC90’s are produced at the company’s assembly plant in Sweden. The XC90 has quickly risen to the top of Volvo’s sales charts, becoming the best-selling vehicle for the brand in the U.S. The company says it is only “natural” that Volvo bring production of the model closer to its number one market. Volvo also anticipates the U.S. will always be the XC90’s largest market.

Local production of the XC90 will also enable the company to experiment with custom order options, which is currently not possible.

The new plant, located in Berkeley County, is Volvo’s first U.S. assembly plant and key to the company’s plans to double its U.S. sales numbers by 2020.

Volvo says the commitment their new U.S. plant has demonstrated has led to residual impacts. Dealerships are beginning to invest in their own facilities; bullish the Volvo brand will continue to see sales growth well into the future.

 

 





 

About Nick Saporito

AutoVerdict Senior Editor Nick Saporito began writing about cars at age 13. Nick ran a couple of automotive enthusiast sites for several years, before taking some time off to focus on his career and education. By day he's a marketing executive in the telecom world and by night he hangs out here at AV. You'll find him focusing on tech, design and the industry's future.
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  1. arutherford
    Another vehicle being built a couple of miles away from me...
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