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Volvo Cars adds next generation XC90, 1,900 new jobs to South Carolina plant in 1.1 billion investment drive

 

Volvo Cars, the premium carmaker, today announces that the next generation of the XC90 large premium SUV will be built in its new manufacturing plant in Charleston, South Carolina from 2021. This takes Volvo Cars’ total investment in its US manufacturing operations to over USD 1.1 billion and will raise the total of new jobs created at the Charleston site to nearly 4,000.

 

The South Carolina plant will start production of the next generation S60 in the fall of 2018. The addition of the next generation XC90 from 2021 as well as a planned new office campus will create 1,900 new jobs, which come on top of the 2,000 new employees currently being hired.

 

“The continued expansion of our plant in South Carolina is another significant commitment to the US market,” said Håkan Samuelsson, president and chief executive. “The plant in Charleston will serve both the US and international markets and forms a strong foundation for our future growth in the U.S. and globally.”

 

Volvo Cars announced in May 2015 that its first ever manufacturing plant in the United States would be located just outside Charleston in South Carolina. The decision to choose South Carolina was taken as a result of its easy access to international ports and infrastructure, a well-trained labour force, an attractive investment environment and experience in the high tech manufacturing sector. 

 

The business logic behind the decision to build the next generation XC90 in South Carolina is compelling. The U.S. is the largest single market for the XC90, although a considerable amount of XC90 volume will be exported from the Port of Charleston. Total U.S. production capacity at the plant will rise to 150,000 vehicles annually.

 

The XC90 has played an important role in Volvo Cars’ sales revival in the United States and around the globe. The widely acclaimed large SUV, launched in 2014, is the most awarded luxury SUV of the century and helped Volvo Cars recover its sales in the United States from a low of 56,000 units sold in 2014 to almost 83,000 units in 2016.

 

Today’s announcement on further expansion in South Carolina allows Volvo Cars to take another step toward the company’s ‘build where you sell’ global manufacturing strategy. It currently operates two manufacturing plants in Europe, as well as two factories in China. A third Chinese plant is currently under construction.

 

In addition to expanding the manufacturing plant Volvo Cars will further develop its neighbouring office campus at the Charleston site. A new office building will be constructed to house up to 300 staff from R&D, purchasing, quality as well as Volvo’s Southern Regional Sales team.

 

“We’re excited to add a second car to our first American factory and we continue to be impressed by the entrepreneurial spirit in South Carolina,” said Lex Kerssemakers, President and CEO of Volvo Car USA. “Our business in the U.S. has been undergoing a transformation over the past two years and this is an important next step for our development here.”

 

While Volvo Cars will employ up to 4,000 people directly at the South Carolina site, the full economic impact on the local economy will be much greater once the job multiplier effect is included. 

 

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Volvo Car Group in 2016

Voor het boekjaar 2016 liet Volvo Car Group (Volvo Cars) een bedrijfswinst optekenen van 11 miljard SEK (EUR 1,2 miljard), tegenover 6,6 miljard SEK (EUR 697 miljoen) in 2015. De omzet voor dit boekjaar bedroeg 180,7 miljard SEK (EUR 19,1 miljard), tegenover 164,0 miljard SEK  (EUR 17,3 miljard) in 2015. In 2016 verkocht Volvo Car Group wereldwijd 534.332 auto's, ofwel 6,2% meer dan in 2015. Deze recordcijfers qua omzet en bedrijfswinst betekenen dat Volvo Car Group kan blijven investeren in het wereldwijde transformatieplan.

 

Over Volvo Car Group

Volvo is actief sinds 1927. Vandaag is Volvo Cars een van de bekendste en meest gerespecteerde automerken ter wereld. In 2016 werden 534.332 Volvo's verkocht in ongeveer 100 landen. Sinds 2010 is Volvo Cars eigendom van Zhejiang Geely Holding (Geely Holding) uit China. Het bedrijf maakte deel uit van de Zweeds Volvo Group tot 1999, wanneer het werd gekocht door het Amerikaanse Ford Motor Company. In 2010 werd Volvo Cars uiteindelijk overgenomen door Geely Holding.

 

In december 2016 stelde Volvo Cars wereldwijd meer dan 31.000 medewerkers tewerk. De hoofdzetel, productontwikkeling, marketing en administratie van Volvo Cars zijn grotendeels gevestigd in Göteborg, Zweden. Het hoofdkantoor van Volvo Cars voor China is gevestigd in Shanghai. De grootste autofabrieken van het bedrijf zijn gevestigd in Göteborg (Zweden), Gent (België) en Chengdu (China), terwijl de motoren worden gemaakt in Skövde (Zweden) en Zhangjiakou (China) en de carrosserie-onderdelen in Olofström (Zweden).

Keywords:
Corporate, Productie
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