Volvo Group Expands North American Presence with $700M Manufacturing Plant in Monterrey
(IN BRIEF) Volvo Group has selected Monterrey, Mexico, as the site for its new heavy-duty truck manufacturing plant, aiming to enhance production capacity for Volvo and Mack trucks across North America, Mexico, and Latin America. The plant, which will be operational by 2026, represents a $700 million investment and is part of Volvo’s broader strategy to strengthen its industrial footprint in the region. The move is expected to leverage Monterrey’s strategic location and infrastructure to improve logistical efficiencies.
(PRESS RELEASE) GOTHENBURG, 24-Aug-2024— /EuropaWire/ — In a significant development for the North American heavy-duty truck industry, Monterrey has been chosen as the site for a new state-of-the-art manufacturing plant by the Volvo Group. This move underscores the growing importance of Monterrey as a strategic industrial hub in the region.
Scheduled to be operational by 2026, this new facility is poised to enhance the production capacity for the Volvo and Mack brands, catering to the expanding demands of the U.S., Canadian, Mexican, and Latin American markets. The plant will focus on the assembly of heavy-duty conventional vehicles, with comprehensive facilities that include cab body-in-white production and painting.
The decision to establish the plant in Monterrey highlights the city’s advantageous logistical position, particularly its proximity to the U.S. border and its well-established infrastructure. These factors are expected to provide substantial efficiencies in supporting sales across North America, as well as in Mexico and Latin America.
This investment is part of Volvo Group’s broader strategy to strengthen its industrial footprint and supply chain in North America. Notably, the Group has also announced the acquisition of Commercial Vehicle Group’s (CVG) production plant in North Carolina, which specializes in the production of cabs for Mack’s heavy- and medium-duty trucks. This acquisition, valued at approximately USD 40 million, is expected to finalize in the second half of this year.
The Monterrey plant represents a significant financial commitment, with an investment of approximately USD 700 million. This move is expected to not only boost Volvo and Mack’s production capabilities but also solidify Monterrey’s position as a key player in the North American automotive manufacturing landscape.
As the global automotive industry continues to evolve, the establishment of this new facility is seen as a critical step in meeting the growing demand for heavy-duty trucks across the Americas, further positioning the Volvo Group as a leader in the sector.
The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers’ uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs more than 100,000 people and serves customers in almost 190 markets. In 2023, net sales amounted to SEK 553 billion (EUR 48 billion). Volvo shares are listed on Nasdaq Stockholm.
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Publish date : 2024-08-23 21:08:00
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