Volvo to open employee training center in S.C.

Volvo Cars, one of the fastest-growing automotive brands in the U.S., is opening a training center in South Carolina.

The new center — Volvo Cars University — will prepare and train Volvo company and dealership employees, focusing on technical and sales training and career development. It will be led by Katarina Fjording, who headed up the construction of Volvo's first U.S. assembly plant in Ridgeville, S.C., which opened in June. The center will be located a few miles from the plant.

"One of the problems with the industry is people change positions too often," said Anders Gustafsson, CEO of Volvo Car USA. "The best way to solve that is to educate colleagues and have a succession plan."

The company did not disclose the amount of investment or construction timeline for Volvo Cars University. A company spokesperson indicated Volvo Cars University will be located several miles from the new assembly plant, in an area roughly 40 miles from Charleston, S.C. The curriculum will begin in the first quarter of 2019.

Volvo is in the middle of a multiyear overhaul of its product lineup and brand image to compete with German luxury automakers for younger, affluent buyers. The redesigned XC60 crossover went on sale this year and the redesigned S60 compact sedan will be coming off the line at Volvo's new U.S. plant this fall.

The company's U.S. sales have rebounded in recent years, and have climbed another 37 percent this year.

Volvo Cars University will be aimed at training and retaining corporate employees and workers throughout Volvo's roughly 300 U.S. dealerships in the face of rapid growth.

"If you have a turnaround on staff and you don't have the right skills, it doesn't matter if you have a great plan and great products," Gustafsson said. "This is a very important pillar in that approach."

Gustafsson spent much of his first year as CEO working with dealers on increasing profit margins, upgrading facilities and introducing new ownership models through Care by Volvo, the company's subscription service.

"Profitability is not a one quarter thing, it's not a one year thing," Gustafsson said. "You need to have a solid platform to work from, that is something that is a weakness right now."

Improving service

One specific area Volvo Cars University will target is training dealership service techs, a common issue across the industry. Turnover from unqualified or disinterested hires can cost dealerships in time and lost vehicle sales.

Training technicians "is really a no-brainer," Gustafsson said. "Skills goes in line with productivity and efficiency."

He estimates Volvo Cars University will be able to train up to 80 technicians per session, including working on product in the training center. The curriculum will have a special focus on new technologies in Volvo's vehicles, as well.

The center is part of a larger Volvo effort to ramp up investment and production in the U.S., one of its top markets, in addition to China and Europe. The center will be modeled off similar programs in those countries.

"This is a long-term plan to have a strong solid manufacturing and commercial platform in every region," Gustafsson said. "We're building up the same structure in the U.S. that exists in Sweden and China."