To meet its global sales targets, Volvo needs to increase its production capacity with a new factory
Volvo’s targets up to the year 2025 include a number of annual sales around 1.2 million units; which is an increase of 80% compared to the 661,713 cars that were sold in 2020. To reach this mark, the Nordic manufacturer is considering the construction of a new factory in Europe, the third, after the units in Torslanda, Sweden and from Ghent, Belgium.
According to Volvo CFO, Bjorn Annwall, the brand needs the two existing factories in Europe, but also to increase production capacity and this requires build a third factory. The desired increase in units sold worldwide is around 80%, in order to reach the number of 1.2 million cars in 2025.
Also according to Annwall, in a recent interview with a business newspaper in Sweden, the third Volvo factory will likely be in Europe, but the location for this new unit has not been anticipated.
In parallel, Volvo CTO Henry Green explained that by increasing the maximum capacity of existing factories, the goal of 1.2 million units can be reached, but also that the brand is already thinking ahead and that in 2025 it does not want that goal to be as much as possible, thus needing production capacity higher than the current one.
Last October, the Gothenburg-based car manufacturer became the second best-listed company in Sweden, with an appreciation around 18 billion dollars (about 16 billion euros).