Volvo Cars plans US plant expansion, doubling investment: source

The upcoming Volvo plant expansion is a vote of confidence in Volvo's sales momentum. — AFP picThe upcoming Volvo plant expansion is a vote of confidence in Volvo’s sales momentum. — AFP picSTOCKHOLM, Sept 19  — Volvo Cars is doubling investment in its first US plant under construction to add a second production line at a total cost of US$1 billion (RM4.20 billion), a source with knowledge of the plans said, as the carmaker heads for a fourth straight year of record sales.

The move to raise capacity even before completion of the plant in Charleston, South Carolina will ultimately add 2,500 workers to the 2,000 already being recruited by the Swedish carmaker ahead of its 2018 opening, the source told Reuters.

A Volvo spokeswoman declined to comment. The increased investment was first reported by the Charleston-based Post and Courier newspaper.

The Charleston plant expansion is a vote of confidence in Volvo’s sales momentum, buoyed by a revamped lineup led by the flagship XC90 SUV, even as US auto market growth tails off.



Under the ownership of carmaker Geely’s unlisted parent company, Zhejiang Geely Holding Group, Volvo has recovered from a sales slump in its final years under previous owner Ford  and is now challenging larger premium rivals such as BMW and Mercedes-Benz .

The company, one of Sweden’s largest by revenue, has blamed supply shortages for a 7 percent dip in US deliveries so far this year and vowed to achieve year-on-year for 2017 as a whole, along with a new global record. — Reuters

Source: The Malay Mail Online





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