Volvo Cars will double down its bet on its upcoming U.S. factory by adding production of its next-generation XC90 crossover and boosting investment to a total of $1.1 billion.
Volvo said Monday it would double its investment in the factory, committing a total of $1.1 billion and adding 1,900 workers to a planned force of 2,000 for a capacity of 150,000 vehicles. The South Carolina plant is slated to open in fall 2018, launching with the production of the S60 sedan. Production of the second-generation XC90 will begin in 2021.
The XC90 -- Volvo's best-selling vehicle in the U.S. and currently built in Torslanda, Sweden -- is the second vehicle planned for production at the Chinese-owned Swedish automaker's factory, currently under construction in Berkeley County, S.C. The plant will be Volvo's first manufacturing operation in the U.S., and is a key part of its growth strategy to nearly double sales in the region by 2020.
"We started our South Carolina factory to strengthen our footprint in the U.S. and reconfirm to our retailers and customers to stay in the U.S. in an active way," Lex Kerssemakers, outgoing CEO of Volvo Cars of North America told Automotive News. "We need a second car to make that sustainable."