Volvo to export half of its production

DETROIT: Swedish automaker Volvo said that it expects to export half of the cars produced at a future plant in the United States.
The first plant in North America by Volvo, a company owned company by a Chinese automotive group, will begin producing the next generation of S60 mid-size sedans in 2018, according to Volvo CEO Hakan Samuelsson.
Samuelsson, speaking to reporters in Detroit on the eve of the industry opening of the International Auto Show, stressed that the plant would have international ambition.
“This is not a factory for local production,” Samuelsson said. “It will of course produce for the US, but around a half of the production will be exported.”
This despite the fact that Volvo already has plants in China and Sweden.
Samuelsson said that the decision on the plant’s scope was made in 2014, long before US car manufacturing and the repatriation of jobs from Mexico became a hot political topic pushed by President-elect Donald Trump.
The CEO said it made sense to build the plant, which will have the capacity of producing 100,000 cars a year, in the United States.
“You sit down and calculate all your financials, people cost per hour, transport cost, we looked into of, course Mexico, we looked into the US, somewhere in the South. At the end, there was no big difference financially,” he added.— AFP

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