Volvo may start U.S. production

Posted Mon Jan 14 2008 3:27 PM by Viknesh Vijayenthiran

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.

Reader Comments

Tue Jan 15 2008 11:16 AM
chris says

the focus is built in deerborn, MI. if you believe what ford says, the US WILL get the next global focus, which will share underpinnings with the cheapest of volvos; the c30, s40, and v50. volvos FOR america, MADE in america; not as far fetched as it sounds. if volvo starts production here, it even gives then the flexibility to send some american volvos to europe to capitalize on the exchange rate right now. the question is; do you think the american dollar will still be this low in 2010? seems like VW is banking on it.

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