New Volvo Truck Plant: Opportunity for More Growth in Monterrey, Mexico

Volvo Picks Monterrey for New Truck Plant in North America

Volvo Expands Truck Production in North America

Monterrey, Mexico, will be the location for Volvo’s new heavy-duty truck plant. This move is part of Volvo’s plan to grow its business in North America. The announcement came on August 23, 2024, and it shows Volvo’s commitment to expanding its production in key markets like the U.S., Canada, Mexico, and Latin America.

Why Monterrey is the Perfect Spot for a New Volvo Truck Plant

The new plant in Monterrey will start operations in 2026. It will add to Volvo’s current U.S. facilities, giving the company more capacity to build trucks. Monterrey is close to the U.S. border and has great infrastructure. This location will help Volvo serve customers in the southwestern and western U.S. regions, as well as in Mexico and Latin America, more effectively.

Volvo believes Monterrey is ideal because it has a strong network of suppliers and good production systems already in place. The plant will make heavy-duty trucks for Volvo and Mack brands, handling everything from assembly to painting.

Building a Stronger Presence in North America

The Monterrey plant is just one part of Volvo’s strategy to strengthen its manufacturing in North America. This plan is key to Volvo’s growth in the region. The company is also set to buy a plant in North Carolina from Commercial Vehicle Group (CVG) for about USD 40 million (SEK 410 million). This plant makes cabs for Mack’s trucks. Volvo expects this deal to be finalized in the second half of this year, adding more capacity in the U.S.

New Volvo Truck Plant: A Big Investment for the Future

Volvo is investing around USD 700 million (SEK 7.2 billion) in the Monterrey plant. This is a big step for Volvo, showing its commitment to growing in North America. The new plant will help Volvo meet the rising demand for heavy-duty trucks by boosting production and making the supply chain more flexible.

Looking Ahead to Growth

Volvo plans to have the Monterrey plant running by 2026. This move is part of a bigger effort to grow in North America. With the investments in Monterrey and North Carolina, Volvo is building a solid foundation to support its future growth. The company is focused on delivering top-quality trucks and services to its customers, adapting to market changes, and staying competitive.

As Volvo continues to expand its production capabilities, the new Monterrey plant will play a key role in its North American strategy, setting the stage for future success.