Volvo Cars will invest 1.2 billion euros in the construction of an environmentally neutral factory to produce electric vehicles in Slovakia, with the first units expected to leave the assembly line in 2026.
The Swedish manufacturer was one of the first to announce a gradual abandonment of combustion engines, culminating in the decision to go exclusively electric by the end of the decade.
In preparation for a future with zero emissions, Volvo Cars announced the investment of 1.2 billion euros in a new factory that will be dedicated only to the production of electric vehicles. The Swedish brand’s third factory will be built near Kosice, in the eastern region of Slovakia.
Volvo Cars prepares to build a factory in Slovakia to produce electric cars
The Swedish brand says that the new unit will serve to adequately respond to the growing demand for its electric cars and capture the potential for future growth.
Without going into too many details, Volvo mentions that the factory will produce a new generation of electric cars, suggesting that they will use a dedicated platform for this type of vehicle. It should be noted that the current XC40 and C40 Recharge that are on sale were developed from a platform for vehicles with a combustion engine.
Third factory in Europe
With this investment, Volvo Cars believes that it is thus able to create a European manufacturing triangle covering its largest sales region, complementing the Belgian plant in Ghent, in Western Europe, and the Swedish plant in Torslanda in Northern Europe.
Construction of the Kosice plant is expected to begin in 2023, with equipment and production lines to be installed during the following year. Series production of purely electric Volvo cars is planned to start in Slovakia from 2026.
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Volvo Cars aims to make its production operations environmentally neutral as early as 2025. As a result, the new plant will use only climate-neutral energy and will also be designed to be a leader in the sustainable and efficient production of electric cars to the highest global standards in energy and environmental efficiency.
According to the Swedish brand, Kosice offers good logistical and transport links to the rest of Europe and also access to a good supplier base. The incentives offered by the Slovak government were also a key factor in the decision to locate this factory at this location.
The factory will have a capacity of up to 250,000 cars a year and will generate several thousand new jobs in the region. The location also allows for further expansion of the factory in the future.