Volvo has announced the construction of a new electric car plant in Slovakia. The new production facility near Kosice is expected to be designed to produce up to 250,000 all-electric cars per year. Construction is scheduled to begin in 2023, with mass production starting in 2026.
The manufacturer is investing around 1.2 billion euros in the plant in eastern Slovakia, whereby the Swedish manufacturer notes in a statement that it expects around 20 percent to be financed by state support.
The new site is to be operated in a climate-neutral manner, and Volvo is not disclosing which models will roll off the production line there. In terms of location, Volvo Cars says it benefits from a well-established automotive supply chain, as it will be the fifth car plant in the country.
The construction of the Kosice plant is reportedly the first new European production site for Volvo Cars in almost 60 years. Headquarters, product development, marketing and administration are mainly located in Gothenburg, Sweden, where there is also a production facility, with others in Ghent in Belgium, South Carolina (USA), Chengdu, Daqing and Taizhou (China). The company also has research and development and design centres in Gothenburg, Camarillo (USA) and Shanghai (China).
With the new plant, the company believes it is "well positioned to meet its customers' continued demand for electric cars and capitalize on future growth potential," Volvo Cars wrote in its statement, noting that the Swedes aim to become fully electric by 2030 and carbon neutral by 2040.
"We have a clear focus on becoming an all-electric mobility brand by 2030, which is in line with our goal," said Jim Rowan, chief executive at Volvo Cars. "Expanding in Europe, our largest sales region, is critical to our transition to electrification and continued growth."
Just a few days ago, Volvo Cars reportedly reorganized its management team. The reorganization became necessary for two reasons: First, the previous deputy, Lex Kerssemakers, will soon retire after 38 years at Volvo. Second, Volvo wants to adjust management responsibilities to achieve its own ambitions for growth and sustainability.