Volvo Cars to invest billions in manufacturing plant
Volvo Cars will invest SEK 10 billion, approximately EUR 1 billion, to upgrade its Torslanda manufacturing plant in Gothenburg. The planned investment is part of the steps the company is taking to become a fully electric car company by 2030.
As part of the planned investments, the company will introduce a number of new and more sustainable technologies and manufacturing processes in the plant. These include the introduction of mega casting of aluminium body parts, a new battery assembly plant and fully refurbished paint and final assembly shops.
“Our future as a company is all-electric and that requires a variety of upgrades across the plant, to ensure that Torslanda can continue to build premium electric cars of the highest quality,” said Javier Varela, head of engineering and operations at Volvo Cars in a statement.
The Torslanda manufacturing plant has an annual production capacity of 300,000 cars and is one of Volvo Cars’ longest-operating manufacturing facilities. It was opened in April 1964 by Swedish King Gustaf VI Adolf. It is the company's largest plant and currently employs around 6,500 people.
“Torslanda is our largest plant and will play a crucial role in our ongoing transformation as we move towards becoming a pure electric car maker by 2030,” said Håkan Samuelsson, chief executive at Volvo Cars, in a statement.
Investing heavily in Gothenburg
Volvo Cars and Northvolt have also recently announced plans for a joint battery manufacturing plant to be located in the same area as Volvo Cars Torslanda manufacturing plant. The new battery plant will be operational in 2025 and create up to 3,000 jobs. The two Swedish companies will also open a joint battery research and development centre in Gothenburg during 2022, which will create a few hundred highly-skilled jobs in the city.
“The investment from Volvo Cars in their manufacturing plant, together with the joint investment decisions the company has made with Northvolt in Gothenburg, show that our city is a very attractive location and that it’s becoming one of the leaders in the transition from ICE-vehicles to electric vehicles,” says Joel Görsch, investment advisor for automotive at Business Region Göteborg.
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