Volvo’s Decision to Build U.S. Plant a Head-Scratcher, from Wards Auto.
Volvo CEO Hakan Samuelsson says the company can’t become a true global automaker without an industrial presence in the U.S.
Volvo’s announcement it will invest $500 million to build a new assembly plant in the U.S. caught many off guard, and on the surface makes little sense.
For one, the Swedish automaker remains a tiny player in the global automotive industry, selling only 465,866 units worldwide last year and just 59,366 in the U.S.
Even with plans to expand its U.S. sales to 100,000 units over the next few years, it’s still not enough to justify a new plant, especially with facilities already operating in Sweden and China.