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sjonnie
04-10-2015, 10:02 AM
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. Full details regarding 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 and play an integral part in Volvo's global manufacturing footprint, serving the US and export markets while helping 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."

The new plant will create new jobs, providing security for its employees and their families. Car plants are also known to have significant multiplier effects on their local areas, injecting funds into neighborhoods. As such, the new plant provides a boost for the economy of the state in which it is located.

Volvo's US revival comes alongside strong growth in China and Western Europe. With plans to increase sales on all three continents, Volvo will be able to meet its medium term sales and profitability targets and clear a path towards even stronger growth in future.

sjonnie
05-11-2015, 08:03 AM
PRESS RELEASE

Volvo Cars selects South Carolina for its first American plant

Volvo Cars, the premium car maker, has chosen South Carolina as the location of its new USD500m factory, highlighting the attraction of the United States as a location for high technology manufacturing and providing a significant boost to South Carolina's economy.

The new facility will have initial annual production of around 100,000 cars and be located in Berkeley County, close to Charleston.

It will make latest generation Volvo models for sale in the United States and for export. Construction will begin in early autumn 2015, with the first vehicles expected to roll off the assembly line in 2018.

Once completed, Volvo will be able to manufacture cars on three continents, underscoring its position as a truly global car maker. It already operates two plants in Europe and two in China.

The new US plant forms part of an ambitious medium term expansion plan to double global sales, boost market share and lift profitability.

"This new global industrial footprint and a complete product renewal forms the foundation for our growth and profitability targets," said Håkan Samuelsson, president and chief executive.

An important factor in Volvo Cars' renaissance will be the US market. Volvo Cars has been doing business in the US since 1955 and has a medium term target to sell at least 100,000 cars a year.

"Building a plant in the US is a reflection of Volvo Cars' commitment to the US and the key role the US plays in our growth objectives," said Lex Kerssemakers, senior vice president Americas.

The decision to choose Berkeley County was taken as a result of its easy access to international ports and infrastructure, a well-trained labour force, attractive investment environment and experience in the high tech manufacturing sector.

Volvo Cars estimates that the plant will employ up to 4,000 people in the longer term. It has been estimated that the multiplier effect of a car plant means that it can create between 5 and 7 new jobs for every job at a plant. On top of that, factories have beneficial effects on many more aspects of the local economy, from taxation income to consumer spending.

"The US remains one of the most dynamic economies in the world and Volvo Cars believes strongly in the benefits of investing and contributing to the markets in which it seeks to sell cars," said Mr Kerssemakers.

Nikki Haley, Governor of South Carolina, said: "By bringing $500 million in new investment and 4,000 jobs to this community, Volvo's presence and commitment to Berkeley County and the state will be felt for decades to come. We are proud to have this global leader in car manufacturing join and strengthen South Carolina's automotive industry."