Volvo to build new plant in Mexico
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 @ 3:25 pm
Your headline is misleading!!!! You need to state in the headline this increase in production will be in MEXICO!!!!!!!
April 12, 2024 @ 10:42 am
I was thinking something similar. There seems to be an effort in the press release to spin the story in a way that portrays the company’s decision as a great thing for the US, as it always is when a large US manufacturer builds a large plant in another country besides the US.
Hmm.
I’m probably just being obtuse. But I prefer the headline ‘Volvo To Build Next Plant In Mexico For Greater Short Term Profits’
They would get candor and honesty points from me for that one.
Then again, what do shareholders want?
April 12, 2024 @ 12:43 pm
How is the headline misleading? The new plant is being built in Mexico, and it’s fairly obvious the increase in production will be in Mexico since that is where the plant will be.
(P.S. I think your exclamation point key is sticking.)
April 12, 2024 @ 3:59 pm
Some People !!!. Doesn’t the US have states close to Mexico?
April 12, 2024 @ 4:36 pm
Need to elect TRUMP. He has the ability to slow or even stop this. Need to keep the jobs in the US. You see what Mexico is doing at our border. No help at all.
April 12, 2024 @ 5:24 pm
This is how Freightliner truck started, said the Mexico plant was just overrun but now 14 years later they build 165 a day in Mexico and 80 in Cleveland NC.
April 12, 2024 @ 10:54 pm
Any financial and/or , production involvements with Mexico or China are not safe or sane for any company in the United States. They are not our friends and would make terrible business partners.
April 14, 2024 @ 8:35 am
David, Agree 100% about China. No excuse for American companies to go there.
Reason companies go to Mexico is 3-fold. It’s close/logistics, easier/cheaper to ship trucks sold south of the border, and workers down there are happy with a lot less pay, so long as it’s not ridiculously low.
I read an article about a strike in 2019. Workers were only being paid the equivalent of $2.50 an hour in a border-city factory run by US interests. That’s not a typo! Hopefully Volvo will be paying a lot more than that to their employees in Mexico, but I promise it will not come close to the salaries in Dublin, VA.