Volvo Car Group has announced it will invest 1.2 billion euros to build a new production plant in Slovakia as part of its expansion plans, the Swedish carmaker said.
The new factory, Volvo Cars’ third in Europe, will build only electric vehicles, in line with the company’s ambition to reach the end of the decade and build only electric cars.
“Expansion in Europe, our largest market, is critical to our shift to electrification and continued growth,” said CEO Jim Rowan.
The plant in Kosice, eastern Slovakia, is designed to produce up to 250,000 cars a year and is expected to provide thousands of jobs in the region.
“Volvo Cars has an ambition to reach annual sales of 1.2 million vehicles by the middle of the decade, which it intends to achieve with a global manufacturing footprint spanning Europe, the US and Asia,” the company said. in her statement.
Volvo Car’s production last year rose 5.6% to nearly 700,000 cars, of which 27% were either fully electric or plug-in hybrids.