Volvo to establish 3rd manufacturing plant in Europe

Volvo Cars has announced that it will establish its third manufacturing plant in Europe. This move will help place the Swedish automotive brand in a position where it will meet the continued demand from its customers for electric cars and capture future growth potential.

The new plant, to be built in Slovakia, will be a state-of-the-art climate-neutral facility that will build only electric cars.

“We have a clear focus on becoming a pure electric mobility brand by 2030, which is in line with our purpose. Expansion in Europe, our largest sales region, is crucial to our shift to electrification and continued growth. I am very pleased to expand our Volvo Cars production footprint into Slovakia and look forward to welcoming new colleagues and partners on the journey ahead,” said Volvo Cars Chief Executive Jim Rowan.

Volvo reveals that the decision to install a new factory in Slovakia was a strategic move. Doing so will allow the Gothenburg-based firm to create a European triangle of manufacturing that will cover its largest sales region.

The soon-to-rise Slovakian building will complement the Ghent plant (Belgium) in western Europe and the Torslanda plant (Sweden) in northern Europe.

The new facility represents an investment of around €1.2 billion. It will be located close to Kosice, in the eastern part of Slovakia, where it will benefit from a well-established automotive supply chain as it becomes the fifth car plant in the country.

The facility is designed to produce up to 250,000 cars per year and is expected to provide several thousand new jobs in the region. The site also allows for further expansion of the plant in the future.

“Personally, I am very pleased that Slovakia has succeeded in the competition for this mega-investment, which will bring development and many jobs in the eastern part of Slovakia, with lots of direct and indirect job opportunities,” said Slovak Republic Minister of Economy Richard Sulik.

Construction of the Kosice plant is planned to start next year, with equipment and production lines installed in 2024. Series production of next-generation, pure electric Volvo cars is scheduled to start in 2026.

“We look forward to welcoming new members to the Volvo Cars Kosice team and the global Volvo Cars family, as well as establishing new collaborations and partnerships in the region. It will be a modern workplace, in a state-of-the-art plant that centers on sustainability and safety,” said Volvo Cars Chief Operating Officer Javier Varela.

Photos from Volvo

Also read: 

Volvo XC40 named ‘Best Car for Towing’ at 2022 Auto Trader New Car Awards in UK

Volvo C40 Recharge earns 5-star Euro NCAP rating

Volvo US gives Boston Fire Dept. XC40 Recharge SUV