Built in the U.S.A.! Volvo Plans American Factory

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Volvo has announced that it will build an assembly plant in the United States as part of its plan to become a “truly global carmaker.”

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The Swedish brand, now owned by the Chinese company Geely, currently builds cars at two factories in Sweden and two in China. Volvo has not said which models would be built at the U.S. facility, or what the planned annual production capacity will be.

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Having a factory in the NAFTA region can provide overseas automakers some protection against currency fluctuations. Today, all Volvos sold here are imported from Europe (except for the recently announced long-wheelbase version of the S60, which will come from China).

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It’s interesting that Volvo is bypassing low-wage Mexico and siting its plant in the U.S.A. The company has not specified where the facility will be located—will it be in the currently fashionable Southeast? Or will Volvo really buck the low-wage trend and choose a location more in tune with the brand’s zeitgeist: Connecticut, say? Or Marin County? In any event, the winning locale will get a $500-million facility, along with all the ancillary economic benefits that may bring.

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Once that U.S. plant is up and running, Volvo expects Americans to step up and buy some more cars. The current goal is for 100,000 annual sales here, which would be a big increase over last year’s 56,366.

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