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Volvo Cars to produce electric motors in western Sweden

10 December 2020
Volvo Cars is investing SEK 700 million in the coming years to produce electric motors in Skövde, north-east of Gothenburg. The carmaker will assemble electric motors at its powertrain plant and plans to establish in-house e-motor production by 2025.

The company, which is headquartered in Gothenburg, said that it is committed to becoming a premium electric car company. It aims for its global sales to consist of 50 per cent fully electric cars by 2025, with the rest hybrids.


Volvo Cars engine plant in Skövde
Volvo Cars engine plant in Skövde, which has around 1,800 employees and makes petrol and diesel motors. Photo: Volvo Cars


According to Volvo Cars, in a first stage, the Skövde facility will assemble e-motors. At a later stage, it intends to bring the full manufacturing process for e-motors in-house into a facility in Skövde. 

“The very first Volvo from 1927 was powered by an engine built in Skövde,” said Javier Varela, senior vice president of Industrial Operations and Quality, in a statement.

“The team is highly skilled and committed to delivering on the highest quality standards. So, it is only fitting that they will be a part of our exciting future,” he added.

Earlier this year, Volvo Cars also announced that it is investing significantly in the in-house design and development of e-motors, which takes place in Gothenburg and Shanghai, China. It also has state-of-the-art battery labs in Sweden and China. 


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Joel Görsch
Investment Advisor
Area of work: Automotive industry Cleantech
Area of concern: Establish and invest


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