Next-Generation Volvo XC90 to Be Built in South Carolina
Company Announces $1.1 Billion Investment, 3,900 Jobs for Charleston Plant
Volvo announced the next-generation XC90 would be produced at the company’s new assembly plant in Charleston, South Carolina. The facility, which will begin producing the next-gen S60 in Fall 2018, represents a $1.1 billion investment in the region. In addition to the 2,000 employees currently being hired for the S60, the XC90’s planned 2021 production will add 1,900 new jobs to the plant.
“The continued expansion of our plant in South Carolina is another significant commitment to the U.S. market,” said Håkan Samuelsson, president and CEO of Volvo Cars. “The plant in Charleston will serve both the U.S. and international markets and forms a strong foundation for our future growth in the U.S. and globally.”
Charleston is Volvo’s first-ever plant in the U.S., and the site was chosen because of its proximity to international ports and infrastructure. Although the U.S. is the single largest market for the XC90, the Charleston plant will also export the large SUV to other markets. The rival BMW X5 is also produced for export in Greer, South Carolina, while Mercedes-Benz’s GLE-Class is built for global markets in Alabama.
Volvo expects the plant to produce 150,000 vehicles annually, aided by a neighboring office that will employ 300 people in research and development, purchasing, quality control, and a regional sales team. Based on BMW’s economic impact on the state, Volvo’s 4,200-employee presence in the state could end up creating 16,000 or more jobs in South Carolina after considering the job multiplier effect.
Source: Volvo Cars