Volvo may start U.S. production

The increasing exchange rate differential between the strengthening euro and weakening U.S. dollar means importing European manufactured models into the U.S. is now significantly more expensive than just a few years ago. Not surprisingly, many of Europe’s top manufacturers are moving production Stateside, the latest being Volkswagen, which is currently searching for a site to build a new plant.

Volvo is now considering doing the same, according to its CEO Fredrik Arp. Speaking with Automotive News at this week’s Detroit Auto Show, Arp said the idea is “an avenue Volvo will explore.” The decline of the U.S. dollar has meant that despite a rise in sales of 7.1%, almost all the gains have been negated.

Officials have been conducting an official strategy review since Ford confirmed it had no intention to sell the brand. Arp explained that one of the benefits of being tied with Ford is the Blue Oval’s new plans for global platforms. This means that Volvo could even share production sites with Ford in the U.S. as well as other countries where Ford has a manufacturing base.