Volvo is headed to South Carolina. The company just broke ground on its first U.S. manufacturing plant which is located in the the Palmetto State, about 30 miles northwest of Charleston to be exact.
The $500 million factory site will be global production site for the all-new S60 sedan currently being developed over in Sweden. Volvo plans to build 100,00 cars a year at the new U.S. plant and Volvo North America CEO Lex Kerssemakers says that number will also include another as-yet-unannounced model alongside the S60.
Last week’s groundbreaking comes as Volvo’s global transformation and U.S. comeback takes root. Volvo’s U.S. sales are up by double-digit percentages over the last two months, with global sales rebounding across car lines. Volvo says it is seeing a strong demand for the all-new XC90 7-Seat SUV, which was released this summer, and the XC60 5-Seat SUV.
Volvo Cars estimates that the factory will employ up to 2,000 people over the next decade and up to 4,000 people in the longer term. An economic impact analysis compiled by Dr. Frank Hefner at the College of Charleston estimates that, for an initial 2,000 direct jobs, more than 8,000 total jobs would be created as a result. The plant would contribute approximately $4.8 billion in total economic output on an annual basis.
The first South Carolina-built Volvos are expected to roll off the assembly line in late 2018.
Photo Credit: Volvo