Volvo on Friday introduced plans to assemble a car plant in Kosice, Slovakia.
The plant will likely be Volvo’s third car plant in Europe, becoming a member of the automaker’s present vegetation in Belgium and Sweden. This represents the primary time in 60 years that Volvo has introduced a brand new plant in Europe.
The plant, which can solely construct electrical automobiles, will be capable of construct as much as 250,000 automobiles per yr. The placement additionally permits for additional growth sooner or later, ought to or not it’s required. Along with the Belgian and Swedish vegetation, Volvo’s capability in Europe will develop to round 600,000 automobiles yearly.
Volvo delivered roughly 700,000 automobiles in 2021 however has plans to develop this determine to 1.2 million by the center of the last decade. Different vegetation are discovered within the U.S. and China, which mixed add annual capability of round 800,000 automobiles.
Volvo will make investments near 1 billion euros (roughly $1.04 billion) within the new plant, with the federal government of Slovakia offering a further 20% in funding. Round 3,300 direct jobs will likely be created.
If all goes to plan, building will begin in 2023 and the primary automobiles will likely be rolling off the road in 2026. By 2030, Volvo plans for all of its vegetation worldwide to be solely constructing EVs.
No point out of what car(s) will likely be constructed on the new plant. One chance is a crossover smaller than the compact XC40, which former Volvo CEO Hakan Samuelsson hinted finally yr.
“We’ve a transparent concentrate on turning into a pure electrical mobility model by 2030, which is consistent with our function,” Jim Rowan, Volvo’s present CEO, stated in an announcement. “Enlargement in Europe, our largest gross sales area, is essential to our shift to electrification and continued development.”