EnclaveForum.net: Buick Enclave Online Community banner

1 - 3 of 3 Posts

2,855 Posts
Discussion Starter #1
I wonder what they'll build in this facility......if I were to make a wild-ass guess, perhaps the XC60 crossover (which is actually a pretty nice, and segment competitive, vehicle). Revised: I just listened to an online report which indicated they'll build vehicles in SC based on their new "flexible" platform which is the basis for the coming-to-market-now redesigned XC90 crossover.

Volvo picks South Carolina for new plant to supply U.S. market

Automotive News | May 11, 2015 - 6:08 am EST
DETROIT (Reuters) -- Volvo Cars has chosen a site in South Carolina for a $500 million investment in its first U.S. plant, it said on today, targeting a bigger share of the increasingly competitive North American premium market.

Work will begin this year on the factory in Ridgeville, Berkeley County, with production due to start in 2018 and quickly reach 100,000 vehicles a year, Volvo said in a statement.

The investment is part of a drive by China's Geely , which bought Volvo Cars from Ford Motor in 2010, to rebuild a brand that ran into trouble in the financial crisis.

"This is a clear sign of commitment to the revival of our U.S. business," Volvo CEO Hakan Samuelsson said.

But the move coincides with toughening competition in the North American luxury car market.

Rivals have been ramping up capacity, with many choosing Mexico for its lower wages, non-unionized workforce and access to the United States and other export markets under a raft of free-trade deals.

In total, North American production capacity is set to rise more than 10 percent over five years to 19.6 million light vehicles in 2020, according to WardsAuto forecasts -- with most of the gain coming from new plant investments.

Germany's Audi, BMW and Mercedes-Benz are among luxury carmakers that have recently announced new production capacity in the region.

Under Geely's ownership, Volvo has stepped up model investments and added a pair of Chinese factories to its two older European plants.

In the United States, where its sales fell 8 percent to 56,000 vehicles last year, the production investment is key to a medium-term pledge to return to 100,000 annual deliveries.

Volvo also faces tougher competition in the U.S. from the resurgent Lincoln and Cadillac brands, as parents Ford and General Motors invest a combined $14.5 billion to revamp their line-ups.

Samuelsson acknowledged the tougher U.S. market conditions, while maintaining that they would not thwart Volvo's plans. "We have a premium brand that is very different," he said.

Mexico was also on Volvo's initial "long list"but the choice for the new factory eventually whittled down to South Carolina and Georgia, he said.

Transport links including harbor access were among the decisive considerations that ultimately weighed in South Carolina's favor, according to the carmaker.

"Logistics was one of the most important factors" for a plant that will import large numbers of parts and export some vehicles, Samuelsson said, adding union representation was "not a relevant factor."

According to an environmental permit application filed for the Berkeley County site, the new factory will initially create 2,000 jobs.

Volvo declined to comment on longer-term production goals but said it ultimately planned to employ as many as 4,000 workers -- suggesting the initial 100,000 vehicle output could approximately double if sales ambitions are realized.

Super Moderator
21,164 Posts
That is certainly good news for the South Carolina economy. :thumb: I can't think of any negatives to this plan. :)

4,433 Posts
I loved Volvos when I was 16-20's, have had 3 of them, 2 cost under $1,000, one was almost 2k. Very luxurious, and 2 were V-6's (anyone who knows, that is actually a big mistake).

I'm just surprised anybody would buy one today. Their whole image was built around safety. But today, even entry level cars have traction/stability/ABS and meet DOT crash standards....

My favorite part about my Volvos were their OEM exhausts, with that nice aesthetic curve to the tailpipe. Anyone who went to a muffler shop got some cheap Walker crushed pipe, whereas OEM was mandrel bent...
1 - 3 of 3 Posts
About this Discussion
2 Replies
3 Participants
john 070
EnclaveForum.net: Buick Enclave Online Community
We’re a forum community dedicated to Buick Enclave SUV owners & enthusiasts. Come join the discussion about upgrades, towing capacity, reliability, and more!
Full Forum Listing