Volvo’s new US plant to rely on at least 29 suppliers from Mexico

2 September, 2017

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Volvo’s marketing officials in Mexico revealed the company’s new plant, scheduled to start production by the third quarter of 2018 in South Carolina, will rely on deliveries from at least 29 suppliers operating from Mexico.

“We are about to open a new plant in Charleston, South Carolina, the interesting thing about it is that, despite being a plant located in the United States, 29 of the main suppliers for the plant are located in our country,” said Alonso Lopez Aldana, director of Marketing for Volvo Mexico to the news outlet EconomiaHoy.

According to Lopez Aldana, most suppliers are located in El Bajio and Northern regions of Mexico, but no further details were offered.

The first Americas’ facility of the Swedish automaker, now under control of Chinese company Geely Holding Group, is currently on the tooling process.

The US$ 500 million plant will employ 2,000 workers who will make 60,000 S60 mid-size sedans a year, half of them for export. The buildings are designed to double capacity to 120,000 vehicles a year sometime in the next five years, with some additional investment in equipment and another 2,000 employees.

The comments took place during a media event to launch the XC60 SUV in the Mexican market. The vehicle will arrive to Volvo showrooms across the country this month and the company expects to sale 450 units during the fourth quarter 2017.

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