Volvo Cars has announced that its first U.S. manufacturing plant will be built in Berkeley County in the State of South Carolina. The company will invest up to US$500 Million in the new manufacturing facility, and annual production capacity initially will be of up to 100,000 cars per year. In 2014, the company sold 56,371 cars in the U.S. and 4,466 in Canada. The new plant will have more than enough production capacity needed to serve the U.S. and Canada in the coming years and will cater to export markets too.
The construction of the new plant located outside of Charleston will begin in early autumn this year. It will make latest generation Volvo models for domestic and export production, but the first vehicles are expected to roll off the assembly line only in 2018.
After Europe and Asia, North America will become the third continent to have a Volvo Cars plant. German rival BMW also has a plant in the State of Carolina, where it produces the X3, X4, X5 and X5M and X6 and X6M models. Volvo is also likely to move its global production of most or all of its crossovers/SUVs to the U.S. in the near future, as the U.S. itself is a big market for this segment and rival companies have already succeeded in pursuing this strategy.