Volvo Cars to launch its first plant in USA in South Carolina
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 Carolinaâ€™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.
The new US plant forms part of an ambitious medium term expansion plan to double global sales, boost market share and lift profitability.
â€œThis new global industrial footprint and a complete product renewal forms the foundation for our growth and profitability targets,â€ said HÃ¥kan Samuelsson, president and chief executive.
An important factor in Volvo Carsâ€™ 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.
â€œBuilding a plant in the US is a reflection of Volvo Carsâ€™ commitment to the US and the key role the US plays in our growth objectives,â€ 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.
â€œThe 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,â€ said Mr Kerssemakers.
Nikki Haley, Governor of South Carolina, said: â€œBy bringing $500 million in new investment and 4,000 jobs to this community, Volvoâ€™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 Carolinaâ€™s automotive industry.â€