Volvo adds XC90 to first U.S. plant, will boost investment to $1.1 billion

Volvo Cars will double down its bet on its upcoming U.S. factory by adding production of its best-selling XC90 crossover and boosting investment to a total of $1.1 billion. The XC90 -- currently built in Torslanda, Sweden -- is the second vehicle planned for production at the plant in South Carolina.

New factory investments? Now?

Falling sales, rising incentives and mounting vehicle inventories — is this really the right time for automakers to invest heavily in new U.S. production capacity? Whatever, several manufacturers have decided to seize the moment.