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Volvo Cars invests heavily in Gothenburg

9 October 2019
Volvo Cars is making a multi-billion kronor investment in its Torslanda manufacturing plant in Gothenburg. The carmaker is replacing its current paint shop with a new facility that will lower energy consumption and emissions.

According to Volvo Cars, the investment is part of a broader investment plan for the Gothenburg site and it illustrates the company’s commitment to Sweden as a manufacturing base.

The carmaker is investing around SEK 3.2 billion (approx. EUR 300 million) in the new paint shop. Construction is planned to begin in 2020. 

“We have identified our paint shop operation as one area in which we can achieve significant reductions in energy consumption and emissions,” said Javier Varela, Senior Vice President Manufacturing and Logistics at Volvo Cars when the new paint shop was announced.

The investment is significant for Gothenburg, explains Henrik Einarsson, head of establishment and investment services at Business Region Göteborg.

“That Volvo Cars continues to invest in its Torslanda plant is very positive for Gothenburg’s labour market and it means that the likelihood of future investments ending up here is much greater. The company is the region’s largest private employer,” he says.  

Contacted Business Region Göteborg

In the lead up to the investment, Volvo Cars was in contact with Business Region Göteborg, which coordinated an investment support package, involving public actors and education providers, with the broader aim of supporting the region’s automotive industry.

“We wanted help with, among other things, shifting skillsets. We also wanted to know that certain investments in infrastructure were being made,” said Paul Welander, senior vice president at Volvo Cars, to local newspaper Göteborgs-Posten.


Public initiatives to boost Gothenburg and West Sweden’s automotive industry

The automotive industry is one of Gothenburg’s most important industries providing jobs for around 35,000 people in the region. At the same time there is also a multiplier effect where every job in automotive generates an additional 2.4 jobs in the region.

Western Sweden is home to OEMs Volvo Cars, the Volvo Group, CEVT and NEVS as well as major and specialist subcontractors and suppliers including SKF, Veoneer, Zenuity, Semcon, Ericsson, HCL and Brose.

In order to increase the region’s global competitiveness, multiple public initiatives are underway or in the pipeline. For example, the county has allocated SEK 70-100 million (2019-2022) to finance projects and initiatives that strengthen the automotive industry in western Sweden; such as competence development initiatives and the upgrading of the test facility Asta Zero to expand possibilities for autonomous vehicles. Another example of a public initiative, is that the City of Gothenburg will assure investments in new public charging infrastructure for electric vehicles.   

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