Volvo Cars upcoming manufacturing plant will contribute big-time in its electrification, carbon neutrality, & expansion goals

KUALA LUMPUR: Volo Cars announced its plans to become fully electric by 2030 and carbon neutral by 2040 a while back and now it is adding elements that will help it achieve thesis goals. Plus, with this new addition, the automaker will be able to expand its global production capacity to reach its growth ambitions.

What does Volvo Cars plan on doing to achieve all its goals?

So, as per a recent press release by the automaker, it will be soon establishing a new state-of-the-art manufacturing facility that will help capture future growth potential and meet its EV demand.

Jim Rowan, chief executive at Volvo Cars on the upcoming new plant said, “We have a clear focus on becoming a pure electric mobility brand by 2030, which is in line with our purpose. Expansion in Europe, our largest sales region, is crucial to our shift to electrification and continued growth. I am very pleased to expand our Volvo Cars production footprint into Slovakia and look forward to welcoming new colleagues and partners on the journey ahead.”

Key highlights of the new Volvo Slovakia manufacturing facility -

• It will be a state-of-the-art plant that will only manufacture electric cars and will be a carbon-neutral facility itself
• It is Volvo’s third manufacturing plant in Europe after the Belgium-located Ghent plant and Sweden-situated Torslanda plant. Thus creating a European triangle of Volvo car manufacturing plants covering its largest sales regions
• A total investment of around EUR 1.2 billion will be made by Volvo Cars in this new facility
• Located in the eastern part of Slovakia, close to Kosice, the new Volvo plant will heavily benefit from the location’s well-established automotive supply chain along with good logistical and transportation links than the rest of Europe
• Though it is the 3rd Volvo Car plant in Europe, in Slovakia it will be the automaker’s 5th facility
• It will help the automaker move towards its annual sales target of 1.2 million cars by mid-decade
• The plant construction will begin in 2023 with the production line and equipment getting installed during 2024
• Production of next-gen, pure electric cars will start in 2026
• With a production capacity of up to 250,000 cars per year, this new plant will create thousands of jobs in the region

Apart from all the location advantages the Kosice plant has, the Slovak government with its incentives have made the location a desirable one.

Prime Minister of the Slovak Republic, Mr Eduard Heger said, “I appreciate that Volvo Cars has decided to build its new plant in Slovakia. The new Volvo Cars plant is important for us since it will improve the social and economic situation in the region and produce only electric cars, which provides the Slovak automotive industry with a competitive perspective in the new ecological era.”

Minister of Economy of the Slovak Republic, Mr Richard Sulik said,
“Personally, I am very pleased that Slovakia has succeeded in the competition for this mega investment, which will bring development and many jobs in the eastern part of Slovakia, with lots of direct and indirect job opportunities.”

What are your views on Volvo Cars' upcoming, carbon-neutral facility? Let us know in the comments.

Also Read: Mazda’s roadmap to get carbon-neutrality by 2035