The company suggests the new plant is a critical element in a restructuring and transformation strategy that has been ongoing since 2010, establishing an industrial presence on three key continents.
The Swedish automaker is exploring several different locations to build the $500 million facility. Specific details surrounding the sites are being kept under wraps until a later date.
The US plant will complement two Volvo factories in Europe and two facilities in China. The company has set a medium-term goal of 100,000 vehicle sales in the US annually. Sales were down by 7.9 percent in the US last year, falling to 56,366 units, but stronger growth in China and Western Europe helped achieve a record year globally.
“Volvo Cars cannot claim to be a true global car maker without an industrial presence in the US. Today, we became that,” Volvo CEO Hakan Samuelsson said in a statement. “The US is an absolutely crucial part of our global transformation and today’s announcement makes it perfectly clear that Volvo is in the US to stay.”
The transformation strategy also includes establishing an entirely new lineup by 2020, introducing a build-to-order program for US customers, and rolling out a new design language.