First Swede in America: Volvo to open new plant in America for the first time
Volvo is now a Chinese owned automaker, but will always be known as the Swedish company that made durable and boxy looking cars. Even though Volvo has gone through a rough financial phase in recent years, the company is getting back on its feet with an announcement of a new manufacturing plant opening in South Carolina in 2018. The $500 million dollar factory also marks the first Volvo plant in the United States.
South Carolina won the bid against other states for the Volvo factory by offering a $120 million incentives package that included funds to develop the property near the Port of Charleston, improve road access and lower taxes. The plant is scheduled to break ground later this year and will be located near the shipping ports off Interstate 95.
The Volvo plant could bring up to 4,000 jobs to South Carolina, where unemployment rates are still high. The state is also proving that America is still a competitive country within the automotive industry. BMW and Daimler Mercedes-Benz also plan on producing vehicles in the state.
One of the incentives offered by the state of South Carolina is to work with the state-owned electric utility and Public Service Authority to obtain the 6,800 acre property for the building of an auto-park. To help Volvo financially, the state will buy a portion of the property where the factory will be built. Once completed, the Volvo plant is estimated to produce 100,000 vehicles annually. This move will help restore the company’s market share in the country, which has been declining for years.
Can the U.S. return to a country that makes things once again? Tell us what you think or find me on Twitter @jesusgreaser and chat with me about it.