Volvo is all set to begin production of cars in the U.S. starting 2018. The Sweden-based company will have its first plant in South Carolina, and according to The Wall Street Journal, it will take up an investment of $500 million.
The work is set to begin at the end of the current year, and the company plans to reach 100,000 vehicles per year. China’s Geely bought Volvo Cars from Ford in 2010. This investment is part of their expansion drive.
The state of South Carolina has offered substantial amount of incentives to lure Volvo to build its car factory in the state near the shipping port and Interstate 95. Around $120 million incentive package has been offered by local officials to improve road access and lower taxes, which means an incentive of 25 cents per dollar.
According to The Wall Street Journal, the new setup will generate around 4,000 jobs in South Carolina, which will be somewhat significant in the unemployment scenario of the state.
It is still not known which car model will be manufactured from the new plant, but surely Volvo will make its ground stronger in the car market of USA. In recent years, there was a decline in sales in the U.S. market for Volvo. Even after the recession was over, they could not gain the momentum required for the company.
Apart from Volvo, other vehicle companies are about to begin production in the state. Daimler AG’s Mercedes-Benz van and BMW sport utility vehicles will be other cars that will soon see light in South Carolina.