Volvo plans to expand new European factory and capacity

Since its acquisition by China’s Giri in 2010, Volvo Cars has been spearheaded by the new XC90 SUV launched in 2015, powering vehicles with a desirable range of new platforms and engine ranges and becoming more and more powerful. It has become. Due to the need for renewal, unit sales have skyrocketed over the last decade, reaching 700,000 units in 2019, more than double that of 2009.

The company’s growing demand for cars is straining its production network as it competes to build enough cars to meet the demands of newly discovered customers. This is especially noticeable in the traditional European domestic market, where cars manufactured at the company’s factories in Ghent, Belgium and Gothenburg, Sweden serve.

GlobalData’s light commercial vehicle production forecast predicts that these plants will operate at nearly 100% capacity within the next three years, which is equivalent to a total capacity of 570,000 units. Without mitigation measures taken to relieve pressure on Volvo’s European factories, their production could even exceed their theoretical maximum capacity.

According to an interview with the company’s CFO, Bjorn Annwall, this context makes it easier to understand why Volvo Cars is planning to open a new factory in Europe. Automobilwoche.. The company does not provide further indicators of factory location or timeline other than establishing the factory in Europe.

While some European OEMs have moved their production networks east of the continent to countries such as Slovakia, the Czech Republic and Hungary to take advantage of labor cost savings, Volvo has a third European factory. You may choose to get closer to your home. The company is working on an ever-growing lineup of electric vehicles, including the Volvo Charge series and the EV-only Polestar subbrand. All of these require a stable battery supply to build. Volvo can decide to stay near Sweden to take advantage of the lithium-ion battery output from Northbolt. This is a Swedish battery supplier that will set up local facilities to supply European OEMs such as Volvo, Volkswagen and BMW.

GlobalData occupancy forecasts show that both Gothenburg and Ghent are expected to reach 100% occupancy within three years. In Sweden, it could be as early as next year, and Belgium predicts that it will reach 100% by 2024. This underscores the needs of Volvo’s more localized Europe. capacity.

Volvo plans to expand new European factory and capacity

Source link Volvo plans to expand new European factory and capacity

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