Photo: Volvo Cars
Volvo Cars is pondering the possibility of a third factory in Europe, which would boost production capacity beyond its current maximum. So, instead of up to 1.2 million vehicles per year, the Swedish marque eyes significantly more, but without disclosing the company's targets.
The alleged new factory would be built sometime by the half of this decade, as German media reported. As a reference, Volvo Cars currently has two factories in Europe that can build up to 800,000 vehicles per year.
According to the report from Automobilwoche, Volvo Cars intended to build up to 1.2 million vehicles per year in Europe, which would mean the new factory would have a capacity of around 400,000 vehicles per year, if not even more.
Representatives of Volvo Cars told Reuters that the company has not decided on the topic at this stage. However, they did point out that they have grown rapidly over the past decade and aim to continue to grow at a similar pace going forward. Moreover, Volvo's officials explained that they can already produce 1.2 million vehicles annually at their six existing factories.
In other words, if Volvo Cars did want to build 1.2 million vehicles per year, which would be possible today, the goal would be to build even more than that. Furthermore, European production means that the Swedish brand wants to manufacture more units of a certain model or model line.
Mind you, modern vehicle factories can be flexible and build a broad range of models, but it is simpler and more cost-effective to keep just a few models in a production unit. Doing so optimizes the supply chain, training programs, and other logistical challenges.
Since production costs are higher in Europe, Volvo Cars might choose to build its more expensive models in the new facility. If we consider the fact that Volvo wants to switch to all-electric vehicles in the near future, the new factory could be just for EVs.
According to the report from Automobilwoche, Volvo Cars intended to build up to 1.2 million vehicles per year in Europe, which would mean the new factory would have a capacity of around 400,000 vehicles per year, if not even more.
Representatives of Volvo Cars told Reuters that the company has not decided on the topic at this stage. However, they did point out that they have grown rapidly over the past decade and aim to continue to grow at a similar pace going forward. Moreover, Volvo's officials explained that they can already produce 1.2 million vehicles annually at their six existing factories.
In other words, if Volvo Cars did want to build 1.2 million vehicles per year, which would be possible today, the goal would be to build even more than that. Furthermore, European production means that the Swedish brand wants to manufacture more units of a certain model or model line.
Mind you, modern vehicle factories can be flexible and build a broad range of models, but it is simpler and more cost-effective to keep just a few models in a production unit. Doing so optimizes the supply chain, training programs, and other logistical challenges.
Since production costs are higher in Europe, Volvo Cars might choose to build its more expensive models in the new facility. If we consider the fact that Volvo wants to switch to all-electric vehicles in the near future, the new factory could be just for EVs.
Google News