Volvo Cars to invest $1.1 billion in Swedish factory to switch to electric vehicles By Reuters
© Reuters. FILE PHOTO: Volvo’s logo is seen on the grille of a Volvo XC40 SUV on display at a Volvo showroom in Mexico City, Mexico April 6, 2018. REUTERS/Gustavo Graf
STOCKHOLM (Reuters) – Volvo Cars will invest 10 billion crowns ($1.1 billion) in its Gothenburg manufacturing plant over the next few years to prepare for the production of fully electric cars, it said on Tuesday .
The investment follows Volvo and battery maker Northvolt’s announcement last week to build a joint battery factory in Gothenburg, western Sweden, as part of a total investment of around 30 billion crowns.
The two Swedish companies announced last year that they would form a joint venture to develop batteries, including creating a giga-factory and a research and development center.
“Volvo Cars will invest SEK 10 billion in its manufacturing plant in Torslanda, Sweden over the coming years to produce this next generation of fully electric cars,” the automaker said in a statement on Tuesday.
He added that he would introduce new technologies and manufacturing processes to the plant, including a new battery assembly plant.
Volvo Cars, majority-owned by China’s Geely Holding, hopes 50% of its sales will be pure electric cars by the middle of this decade and reach 100% by 2030.
($1 = 9.1419 Swedish kronor)
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