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Volvo to build next-gen XC90 in South Carolina in 2021

ABR Staff Writer Published 26 September 2017

Volvo Cars said it will build its next generation of the XC90 large premium SUV in its new manufacturing facility in Charleston, South Carolina, US, from 2021.

The move takes the company's total investment in its US manufacturing operations to more than $1.1bn and will raise the total of new jobs created at the Charleston site to about 4,000.

For producing XC90, Volvo plans to build a new office campus which will house the 1900 employees, who will come on top of the 2000 new employees being hired presently.

The investment is part of Volvo’s global manufacturing strategy to ‘build where you sell’. The company presently has two manufacturing plants in Europe, along with two factories in China. A third Chinese plant is also under construction.

Volvo president and CEO Håkan Samuelsson said: “The continued expansion of our plant in South Carolina is another significant commitment to the US market.

“The plant in Charleston will serve both the US and international markets and forms a strong foundation for our future growth in the US and globally.”

In 2015, the company announced its intention to produce in the US and said that it will produce outside of Charleston, South Carolina. Volvo chose South Carolina, because of the close proximity to international ports and infrastructure, well-trained labour force and an experience in high tech manufacturing sector.

Volvo claims that the US is one of the largest markets for XC90 and the next generation XC90 produced in Charleston are expected to rise to 150,000 vehicles annually.  The Swedish automaker also stated that XC90 has helped in reviving its sales in the US and around the world.

In addition to building a new manufacturing plant, Volvo also plans to build a new office to house up to 300 staff from R&D, purchasing and quality along with its Southern Regional Sales team.

Volvo Car USA president and CEO Lex Kerssemakers said: “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.

“Our business in the US has been undergoing a transformation over the past two years and this is an important next step for our development here.”


Image: Volvo to invest $1.1bn in South Carolina plan to produce XC90 premium SUV. Photo: Courtesy of Volvo Car Corporation.