Volvo Group to Increase North American Heavy Truck Production Capacity

Rhea-AI Summary

Volvo Group is expanding its North American heavy truck production capacity by building a new manufacturing plant in Mexico. The plant will support growth plans for Volvo Trucks and Mack Trucks in the U.S., Canada, Mexico, and Latin America, with an expected operational date in 2026. The investment in the new plant, along with ongoing expansions in existing facilities, aims to enhance production capabilities and logistical efficiency.

GOTHENBURG, Sweden, April 11, 2024 /PRNewswire/ -- The Volvo Group today announced that it will build a new heavy-duty truck manufacturing plant in Mexico to supplement the Group's U.S. production. The plant will provide additional capacity to support the growth plans of both Volvo Trucks and Mack Trucks in the U.S. and Canadian markets, and support Mack truck sales in Mexico and Latin America.  The plant is expected to be operational in 2026.

The Mack LVO plant in Pennsylvania and the Volvo NRV plant in Virginia will continue to be the company's main North American heavy truck production sites. The Group has invested more than $73 million over the last five years in LVO expansion and upgrades, and is currently investing an additional $80 million to prepare for future production. The NRV plant is completing a six-year, $400 million dollar expansion/upgrade to prepare for production of the new Volvo VNL model.

The new plant will be approximately 1.7 million square feet in size, and will focus on production of heavy-duty conventional vehicles for the Volvo and Mack brands. It will be a complete conventional vehicle assembly facility including cab body-in-white production and paint.

Adding production in Mexico will deliver logistical efficiencies for supporting sales to the southwestern/western regions of the U.S., and to Mexico and Latin America. It also provides a mature supply and production ecosystem that will complement the U.S. system and increase the resilience and flexibility of the Group's North American industrial footprint.

April 11, 2024

Journalists wanting further information, please contact:
John Mies, Senior Vice President Communications,
Volvo Group North America
Phone: +1 (336) 543-9094
Email: john.mies@volvo.com 

For more information, please visit volvogroup.com  For frequent updates, follow us on X: @volvogroup 

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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https://mb.cision.com/Main/39/3960204/2726400.pdf	Volvo Group to Increase North American Heavy Truck Production Capacity
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SOURCE AB Volvo

FAQ

What is Volvo Group's plan for expanding its North American heavy truck production capacity?

Volvo Group is building a new manufacturing plant in Mexico to support growth plans for Volvo Trucks and Mack Trucks in the U.S., Canada, Mexico, and Latin America.

When is the new manufacturing plant expected to be operational?

The new manufacturing plant in Mexico is expected to be operational in 2026.

What investments has Volvo Group made in its existing facilities?

Volvo Group has invested over $73 million in LVO expansion and upgrades in the last five years, and is currently investing an additional $80 million for future production. The NRV plant is completing a $400 million expansion/upgrade to prepare for production of the new Volvo VNL model.

What will be the focus of production at the new manufacturing plant in Mexico?

The new plant will focus on production of heavy-duty conventional vehicles for the Volvo and Mack brands, including cab body-in-white production and paint.

How will adding production in Mexico benefit Volvo Group?

Adding production in Mexico will deliver logistical efficiencies for supporting sales to the southwestern/western regions of the U.S., Mexico, and Latin America, and enhance the resilience and flexibility of the Group's North American industrial footprint.