Volvo’s XC90 SUV will be the second car to be built at its new manufacturing plant in Berkeley County, South Carolina beginning in 2021 making the company’s total investment in its US manufacturing operations over $1.1 billion. It is expected to raise the total of new jobs created at the Charleston site to nearly 4,000.
The South Carolina plant will start production of the next generation S60 in the fall of 2018. The addition of the XC90 from 2021 as well as a planned new office campus is expected to create 1,900 new jobs. The company is currently in the process of hiring 2,000 new employees.
“The continued expansion of our plant in South Carolina is another significant commitment to the US market,” said Håkan Samuelsson, president and chief executive. “The plant in Charleston will serve both the US and international markets and forms a strong foundation for our future growth in the U.S. and globally.”
The decision to build the next generation XC90 in South Carolina is based in part on the U.S. being the largest single market for the XC90.
The further expansion in South Carolina is in keeping with the company’s ‘build where you sell’ global manufacturing strategy. It currently operates two manufacturing plants in Europe, as well as two factories in China. A third Chinese plant is currently under construction.
In addition to expanding the manufacturing plant Volvo Cars will further develop its neighboring office campus at the Charleston site. A new office building will be constructed to house up to 300 staff from R&D, purchasing, quality as well as Volvo’s Southern regional sales team.
“We’re excited to add a second car to our first American factory in South Carolina and we continue to be impressed by the entrepreneurial spirit in South Carolina,” said Lex Kerssemakers, President and CEO of Volvo Car USA. “Our business in the U.S. has been undergoing a transformation over the past two years and this is an important next step for our development here.”
Earlier this year, Volvo made a splash with its announcement saying that all models launched from 2019 onwards would be electrified in some manner.