- The Swedish multinational Volvo Group announced that it has chosen Monterrey, located in northern Mexico, as the site for its new heavy-duty truck manufacturing facility in North America.
- The construction of this plant is expected to cost around $700 million, and it is slated to begin operations by 2026.
OUR TAKE
Volvo’s choice of Monterrey for its new heavy-duty truck plant underscores the city’s strategic importance in logistics and manufacturing. This investment bolsters Volvo’s presence in North America and positions Monterrey as a key player in the automotive sector, aligning with the company’s sustainability goals and enhancing its global competitiveness.
–Vicky Wu, BTW reporter
What happened
Swedish multinational Volvo Group has selected Monterrey in northern Mexico as the location for its new heavy-duty truck manufacturing facility in North America, with construction costs estimated at $700 million, the company announced on Friday. The facility, scheduled to become operational by 2026, will significantly 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.
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Why it’s important
The 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.
Additionally, the Volvo Group has announced the acquisition of Commercial Vehicle Group’s (CVG) production plant in North Carolina, which specialises in the production of cabs for Mack’s heavy- and medium-duty trucks. This acquisition, valued at approximately $ 40 million, is expected to finalise in the second half of this year, further strengthening the company’s industrial footprint and supply chain in North America.
The Volvo Group’s commitment to shaping the future landscape of sustainable transport and infrastructure solutions is underscored by these strategic investments. With more than 100,000 employees serving customers in almost 190 markets, the Volvo Group is dedicated to driving prosperity through transport and infrastructure solutions.
