Volvo confirms U.S. factory plans

Volvo, the Sweden-based but Chinese-owned auto giant, confirmed to the Wall Street Journal that it plans to build a major U.S. auto factory.

In an interview with the WSJ, Volvo CEO Håkan Samuelsson confirmed plans to build a half-billion dollar factory, but did not say where. Multiple states are still being considered.

On March 4, The Atlanta Journal Constitution reported that Volvo was scouting Georgia and other Southeastern states. It came after news that the state was also pursuing a factory by Jaguar Land Rover, though the British auto company of late has reportedly shifted its gaze to Europe and Asia, and that factory also might be on hold.

Samuelsson told the WSJ that the plant would make vehicles on the “SPA” platform, a new design to be the basis of several cars and SUVs.

Volvo is owned by the parent of Geely, a Chinese automaker. The WSJ reported that there are no plans to build both Volvo and Geely cars at the new U.S. facility, but Samuelsson told the paper it could be a distribution site for Chinese autos in the U.S.

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