A former timber plantation in a sleepy southern town will be put back to work building new Volvos. In the first Swedish-Chinese-South Carolinian collaboration of its kind, Volvo is scheduled to break ground on a $500-million factory this fall.
-Since late March, when Volvo announced it would construct an American plant with capacity for 100,000 cars a year—nearly double what it sold here in 2014—the automaker turned down a proposal near Savannah, Georgia, and turned its focus to the Palmetto State, which agreed to offer incentives worth up to $120 million. Volvo has not announced which models would roll down the line when construction finishes in 2018 or what percentage will be exported. (There’s also no word as to whether this deal will bring South Carolina its first IKEA store.)
-Volvo plans to hire up to 2000 employees, and you can bet your sweet tea that the UAW won’t come knocking. During Volkswagen’s union debates in neighboring Tennessee last winter, South Carolina Governor Nikki Haley said she wore high heels to stomp unions out of her state. “You’ve heard me say many times I wear heels. It’s not for a fashion statement,” she said. “It’s because we’re kicking them every day, and we’ll continue to kick them.” In the long term, Volvo expects to employ 4000 people. The plant will be Volvo’s fifth after its two Swedish and two Chinese factories.
-Volvo says it will use a large chunk of the 6800-acre Camp Hall Plantation, situated about 40 miles northwest of Charleston (where one of two major ports is located) and closer still to Daimler’s Mercedes-Benz Sprinter van plant. According to The Columbia State, Volvo filed an environmental permit for 575 acres with another 322 acres available for expansion.
--
- -
- Volvo Skipping Most 2015 Auto Shows to Focus on Internet
- -
- Swede Plan, Bro: Volvo Plans New Compact Crossover and Sedan, Luxe 90-Series Models
- -
- Volvo XC90 Research: Full Pricing, Specs, Details, and More
- -
-
Given Volvo’s languishing volume among an industry that has seen nearly every brand bounce back from the recession, the South Carolina plant will likely export half, if not more, of the vehicles it builds. A planned lineup expansion into compact crossovers and upscale S90s will help fill the factory floor. But more telling is what Geely, Volvo’s owner since 2010, may do with a large vehicle-assembly plant sitting on cheap land and a state willing to do whatever it takes to boost employment. Could this be the first step to American-made, Chinese-branded cars? If Volvo wanted to export cars cheaply, it could have built a plant in Mexico, a nation that’s tariff-free to most European and Latin American countries. More than shiny XC90s, we’re betting Geely wants to win in America.
-from Car and Driver Blog http://ift.tt/1K1WSw7
via Agya
