Volvo has announced that it is investing over $1.1 billion in its Charleston, South Carolina plant to build the next-generation Volvo XC90 in 2021. The huge investment at its U.S. plant will also add almost 4,000 new jobs.
The South Carolina plant will kick off production of the next-generation S60 next fall.
“The continued expansion of our plant in South Carolina is another significant commitment to the US market,” said Håkan Samuelsson, president and chief executive. “The plant in Charleston will serve both the US and international markets and forms a strong foundation for our future growth in the U.S. and globally.”
It makes sense that Volvo would move production of the XC90 to the Charleston, South Carolina, since the United States is the XC90’s largest market. Total production capacity at the plant will rise to 150,000 vehicles annually. In addition to expanding the manufacturing plant, Volvo will further develop its office campus at the Charleston site to house up to 300 staff from R&D, purchasing, quality as well as Volvo’s Southern Regional Sales team.
“We’re excited to add a second car to our first American factory and we continue to be impressed by the entrepreneurial spirit in South Carolina,” said Lex Kerssemakers, President and CEO of Volvo Car USA. “Our business in the U.S. has been undergoing a transformation over the past two years and this is an important next step for our development here.”