Volvo has started the relevant procedures to build what will be its third car factory in Europe. This will go entirely to increasing the production of new electric models and will join the existing plants in Torslanda and Ghent (Sweden and Belgium, respectively). Many traditional companies are increasing their investments on the future electric range that is yet to come, investing high amounts of money both in the manufacture of these and their components, with a view to meeting the high demand that these vehicles will have by the end of the decade.
The Swedish firm is heading to abandon its entire fleet of models with thermal mechanics by the end of this decade, presumably reaching a range of all-electric models by 2030. On the other hand, by the year 2040, the brand’s plans speak of being a carbon-neutral company, something they hope to achieve not only by providing customers with a range of entirely electric models, but also through the use of clean and renewable energies for its manufacturing plants, as well as for its suppliers.
Volvo’s new factory will be based in Slovakia, as announced by the brand itself a few hours ago. in this location only and exclusively electric models will be manufactured, as it is expected that its fine-tuning will be completed by the last years of this decade. “Expansion into Europe, our largest sales region, is crucial to our shift to electrification and continued growth,” said Jim Rowan, CEO of the company.
For its construction and operational set-up A total of 1,200 million euros will be invested. The first projects on this new electric car factory based in Košice, in eastern Slovakia, estimate an annual production of up to 250,000 vehicles. This will generate thousands of direct and indirect jobs through some supplier companies that will also settle in the vicinity of the Volvo plant. The same project contemplates saving adjoining land in which to carry out expansions of the factory in case increased production of electric vehicles is required in the future.
Currently, the annual production of Volvo Cars is around 700,000 units per year thanks to its two operating plants, one in Sweden and one in Belgium. In the last year, 27% of production were electric vehicles or plug-in hybrids. Volvo’s future plans speak of an estimated annual sales of up to 1.2 million vehicles from 2025. At the same time, the Swedish brand hopes to achieve a systematic reduction in the emissions of its models marketed in Europe, the United States and Asia.
