Volvo to Build New Mexican Heavy-Duty Truck Plant

By Dominic Chopping

STOCKHOLM--Volvo will build a new heavy-duty truck manufacturing plant in Monterrey, Mexico, as it looks to supplement its U.S. production and provide additional capacity to support growth plans across North America.

The Swedish truck maker said that with its proximity to the U.S. border and well-developed infrastructure, Monterrey provides logistical efficiencies for supporting sales to the southwestern and western regions of the U.S., as well as to Mexico and Latin America.

The decision to build the new plant follows plans outlined in April as Volvo seeks to grow its Volvo and Mack brands in North America. It is boosting efforts to grow its industrial footprint and supply chain in the region, with the new Mexico plant following an earlier decision to buy Commercial Vehicle Group's production plant in North Carolina.

The Monterrey plant represents an investment of around $700 million and will focus on production of heavy-duty conventional vehicles for the Volvo and Mack brands. It is expected to be operational in 2026.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

August 23, 2024 02:14 ET (06:14 GMT)

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