Volvo Cars has announced that the next generation of the XC90 will be built at the upcoming plant in South Carolina in 2021. It will join the planned production of the next generation S60, which is itself set for production in the second half of 2018.
This will take the total investment in the plant to 1.1-billion dollars and raise the strength of the employees from the current 2,000 being hired to almost 4,000 people. “The continued expansion of our plant in South Carolina is another significant commitment to the US market,” said Håkan Samuelsson, president and chief executive. “The plant in Charleston will serve both the US and international markets and forms a strong foundation for our future growth in the U.S. and globally.”
The Charleston plant was announced by Volvo Cars as far back as 2015 and is strategically placed close to ports and a trained workforce as well as receiving incentives towards the investment in South Carolina. The XC90 is similarly targeted for production there because most of the cars will be sold in the United States, while the rest can be exported from Charleston. Production at the plant is set to hit 150,000 vehicles annually.
“We’re excited to add a second car to our first American factory and we continue to be impressed by the entrepreneurial spirit in South Carolina,” said Lex Kerssemakers, President and CEO of Volvo Car USA. “Our business in the U.S. has been undergoing a transformation over the past two years and this is an important next step for our development here.”