Volvo Increases Investment in Mexico Truck Factory to $1 Billion

AB Volvo will raise its investment in a truck factory in Nuevo Leon, Mexico, to $1 billion. This announcement was made by Mexico’s Economy Minister, highlighting a significant increase from the original $700 million estimate. The factory is set to begin production in 2026.

In a significant development, Sweden’s AB Volvo announced an increase in its investment towards its new truck factory in Nuevo Leon, Mexico, raising the total to $1 billion. This information was disclosed by Mexico’s Economy Minister, Marcelo Ebrard, on Thursday. Initially, Volvo had estimated the construction costs at around $700 million when the site was chosen in August, located near Monterrey, a key industrial region in northern Mexico.

Minister Ebrard expressed enthusiasm about the increased investment, sharing the news on the platform X. He noted that he had received confirmation regarding Volvo’s decision directly from the company’s headquarters in Sweden. The factory is projected to commence production in 2026, marking an important milestone for Volvo’s operations in North America.

Volvo has not yet responded to inquiries regarding the investment details outside of regular business hours.

In summary, AB Volvo’s planned investment increase to $1 billion for its truck factory in Nuevo Leon reflects a significant commitment to North America. The factory’s production is expected to begin in 2026, indicating a strong future for Volvo’s operations in the region.

Original Source: www.tradingview.com