The new plant in Slovakia, Volvo’s third in Europe, will be climate neutral and aligns with the company’s ambition to become fully electric by 2030 and climate neutral by 2040.
Volvo Cars said it aims to sell 1.2 million cars annually by the middle of the decade, an ambition that will be met with a global manufacturing footprint spanning Europe, the US and Asia.
“We have a clear focus on becoming a pure electric mobility brand by 2030, which is in line with our purpose,” said Jim Rowan, chief executive at Volvo Cars. “Expansion in Europe, our largest sales region, is crucial to our shift to electrification and continued growth. I am very pleased to expand our Volvo Cars production footprint into Slovakia and look forward to welcoming new colleagues and partners on the journey ahead.”
Construction of the Kosice plant in eastern Slovakia is planned to start in 2023, with equipment and production lines installed during 2024. Series production of next-generation, pure electric Volvo cars is scheduled to start in 2026.
According to Volvo, Kosice offers good logistical and transport links to the rest of Europe and access to a good supplier base. Incentives offered by the Slovak government has also been a key factor in the decision to locate the plant in Kosice, the company added.
The facility – which will have room for future expansion - is designed to produce up to 250,000 cars per year and is expected to provide several thousand new jobs in the region.
The establishment of the Kosice plant represents the first new European manufacturing site for Volvo Cars for almost 60 years. The company’s Torslanda plant in Sweden was opened in 1964, while the Ghent factory in Belgium followed a year later. Together, these facilities can produce 600,000 cars per year.
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