Volvo Says New Assembly Plant To Be Built In US NOT In Mexico

Chinese-owned Volvo Cars said Monday it will build a $500 million assembly plant in the United States — as the U.S. auto sector faces increasing pressure from Mexico.

Volvo said the investment is a sign of its "long-term commitment to the U.S. market. The company has drawn up a short list of potential locations and full details of the location of the new factory and the size of the investment will be announced at a later date."

“Volvo Cars cannot claim to be a true global carmaker without an industrial presence in the U.S. Today, we became that,” said Hakan Samuelsson, CEO and president, in a statement. “The U.S. is an absolutely crucial part of our global transformation and today’s announcement makes it perfectly clear that Volvo is in the U.S. to stay.”

MDarringer - 3/30/2015 7:45:50 PM

-3 Boost

Given how dismal US Volvo sales are and with Volvo over-promising with its concepts and under-delivering with the bland XC90, Volvo's growth outlook does not look amazing. For Geely to invest in a manufacturing plant probably signals a move by Geely to enter the market.