Volvo wants to build a new plant in Europe
- In order to meet the objective of being a full electric car producer in 2030, Volvo has opted for the construction of a new assembly plant in Europe. The Swedish carmaker Volvo (a subsidiary of the Chinese group Geely) has decided to increase its production capacity to 1.2 million vehicles per year, against 900,000 units today.
- Certainly, Volvo's sales have never reached this figure of 900,000 units per year, as they did not exceed 662,000 units in 2020 against 705,000 in 2019 and 642,000 in 2018. In 2021, Volvo will produce 700,000 cars, returning to the level of 2019. But the Swedish carmaker believes that the expansion of its range will certainly increase its sales, reaching and even exceeding one million vehicles per year (Mercedes and BMW each producing between 2.2 million and 2.3 million vehicles per year).
- Volvo now has two plants in Europe, one located in Sweden (Gothenburg) and the other in Belgium (Ghent), with a total capacity of 550,000 vehicles per year (300,000 for Ghent and 250,000 for Gothenburg). Outside of Europe, Volvo has two plants in China (Daqing and Luqiao) which have not yet reached saturation (162,000 cars produced in 2021 out of 300,000 capacities) and a factory in the USA (Ridgeville) which is far from being saturated (26,000 cars produced in 2021 out of 50,000 capacities).
- Volvo's bet is therefore risky especially at a time when the demand for vehicles in Europe is likely not only to stabilize over the next few years, and even to contract due to the price to acquire a car, especially a battery electric vehicle, and more generally, due to the politic to restrain automobiles in big European cities.
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