Volvo increases the capacity of its Swedish plant of Gothenburg
- The manufacturer Volvo Cars (subsidiary of Chinese company Geely) has now two plants, one in Belgium (Ghent) and one in Sweden (Gothenburg). The manufacturer has decided to increase the production capacity of its plant in Gothenburg, from 250 000 to 300 000 vehicles per year.
- In 2013, the company produced 161 335 vehicles (V60, V70, XC70, S80, XC90), against 180 802 in 2012, which represents only a 65% utilization rate, but the carmaker believes that with the arrival of new models planned for 2015 on its SPA modular platform (future XC90, XC70, V70 and S80), the demand for these models is expected to increase substantially compared to current generations.
- Volvo will therefore increase its production capacity in Gothenburg as the carmaker plans to replace in the same year four models that are currently produced on site, they will be marketed in Europe, North America and China, in its three major markets.
- Volvo also believes it can benefit from the growth of global demand concerning premium brands, a category the Swedish carmaker is positioned on. Today, Volvo is the world's fifth largest premium brand behind BMW, Audi, Mercedes and Lexus.
