Volvo Cars announced that it will establish a third manufacturing plant in Europe in Slovakia, positioning the company well to meet the continued demand for electric cars.
The new state-of-the-art plant will be climate neutral and build only electric cars, underpinning the company’s ambition to become fully electric by 2030 and climate neutral by 2040, and to continue expanding its global production capacity to match its growth ambitions.
By picking Slovakia as the location for its new plant, Volvo Cars creates a European triangle of manufacturing covering its largest sales region – complementing the Ghent plant (Belgium) in western Europe and the Torslanda plant (Sweden) in northern Europe.
The new facility represents an investment of around EUR 1.2 billion (1). It will be located close to Kosice, in the eastern part of Slovakia, where it will benefit from a well-established automotive supply chain as it becomes the fifth car plant in the country.
Volvo Cars has an ambition to move towards annual sales of 1.2 million cars by mid-decade, which it aims to meet with a global manufacturing footprint spanning Europe, the US and Asia.
Construction of the Kosice plant 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.
The facility is designed to produce up to 250,000 cars per year and is expected to provide several thousand new jobs in the region. The site also allows for further expansion of the plant in future.
The establishment of the Kosice plant represents the first new European manufacturing site for Volvo Cars for almost 60 years. The Torslanda plant was opened in 1964, while the Ghent factory followed a year later. Together, these facilities can produce 600,000 cars per year.
(1) Around 20 per cent is expected to be funded by governmental support.
Source: Volvo Cars