Volvo Plans Lineup Overhaul, U.S. Factory
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).
Read our full review of the 2016 Volvo XC90 here.