Volvo has announced some lofty plans for the coming years, including a new production facility in the U.S. and a completely overhauled model lineup over the next four years. Details remain scarce on both fronts, but what is known is that the Swedish automaker confirmed an investment of $500 million to create an assembly plant for the American region.

But don’t expect any American-made Volvos cruising the streets just yet. Volvo hasn’t even finalized a location of the new production facility, but it has narrowed the search down to three states, which remain unnamed at this point. Based on recent trends, there’s a good bet the plant will be located in the Southeast. The new assembly plant would mark just the fifth such facility globally for Volvo with two located in Sweden and another two in China. Likewise, while there is no indication as to what vehicle(s) would be built in the U.S., there’s a good chance it would be either the XC90 or Volvo’s current top-seller here, the XC60.

Speaking of the XC90, the plan for a revamped lineup in four years means that by 2019, the oldest Volvo product will be the second-generation XC90 that is set to go on sale this year. While this is an aggressive move for the growing automaker, all of the vehicles are likely to be based on Volvo’s new Scalable Product Architecture (SPA) platform.

Continue reading to learn more about Volvo’s future U.S. production.

Why it matters

U.S. production would make Volvo a true global automaker as it would have facilities in Europe, China and North America. Volvo says that such a plant is crucial in meeting its goal of selling 100,000 a year in the U.S., which is almost twice what it sold here last year (56,371).

2016 Volvo XC90

2016 Volvo XC90 High Resolution Exterior
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Read our full review of the 2016 Volvo XC90 here.

Press Release

Volvo Cars to build new factory in US

•Volvo Cars becomes a truly global car maker with industrial presence in its three key continents
•Industrial investment of around USD 500 million in a new car plant
•Underlines Volvo’s commitment to the US market

Volvo Cars announced today that it is to build a brand new manufacturing facility in the US, fulfilling its ambition to be a truly global car maker, investing around 500 million dollars in a new plant and underscoring its long term commitment to the US market.

The company has drawn up a short list of potential locations and full details of the location of the new factory and the size of the investment will be announced at a later date.

The move means Volvo is now a global car manufacturer with an industrial footprint on all three key continents. It has two factories in Europe, two in China and the future plant in the US, which will be part of the Americas region that was announced in January. These developments form part of Volvo’s transformation that has been ongoing since 2010.

The transformation plan involves the creation of a global industrial footprint, the complete renewal of Volvo’s product range over the next four years, the introduction of a new modular vehicle technology, the development of world-first safety technologies, a new design language and a range of class-leading connectivity services.

“Volvo Cars cannot claim to be a true global car maker without an industrial presence in the US. Today, we became that,” said Håkan Samuelsson, Chief Executive and President. “The US is an absolutely crucial part of our global transformation and today’s announcement makes it perfectly clear that Volvo is in the US to stay.”

Volvo Cars has been doing business in the US since 1955 and this decision to invest in the US highlights Volvo’s long term commitment to the US market. The new plant also means Volvo will be able to meet and ultimately exceed its volume targets in the US, where it has a medium term ambition to sell 100,000 cars a year. It will help accelerate the introduction of build-to-order in the US as well as being an integral part of Volvo’s global manufacturing footprint, serving the US and export markets, and also help limit the impact of currency variations.

“The US Volvo dealers are delighted with this announcement,” said Chip Gengras, chairman of the Volvo dealer council in the US. “It clearly illustrates Volvo’s long term commitment to the US market.”

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