By Abhirup Roy and Marie Mannes
LAS LAS VEGA (Reuters) – Sweden’s Volvo Group is waging its intended $700-million heavy-truck manufacturing facility in Monterrey, Mexico, CHIEF EXECUTIVE OFFICER Martin Lundstedt informed Reuters on Wednesday, also as President- choose Donald Trump endangers to enforce united state tolls on imports of lorries and various other products.
The manufacturer of Volvo and Mack semi vehicles has actually targeted development in North America, which represents around 30% of business profits, as a critical concern and anticipates the plant to begin procedures in 2026. It anticipates the manufacturing facility to provide lorries to the United States, Mexico and Canada, in addition to to Latin America.
Trump has actually claimed that quickly after hisJan 20 launch, he will certainly authorize all required papers to start billing a 25% toll on imports from Mexico and Canada unless those nations secure down on prohibited migration and fentanyl trafficking.
The Mexico task goes to an “early stage that is continuing,” Lundstedt claimed in a Reuters NEXT Newsmaker meeting on the sidelines of CES 2025, a yearly technology meeting inLas Vegas He claimed Volvo has choices to make use of the plant to buy outside the United States.
“This is not a replacement of our American facilities,” he claimed, Depending on what occurs with united state tolls, Volvo’s Mexico manufacturing facility might or might not send out vehicles to the united state, he claimed.
Volvo’s united state manufacturing facilities presently make 100% of the vehicles it markets in theUnited States The business has actually been purchasing plants in Virginia, Maryland and Pennsylvania to increase that capability, Lundstedt claimed.
Trump’s toll propositions have actually sent out a shockwave with the vehicle field since a swath of guest carmakers, consisting of BMW, Toyota and General Motors, have actually purchased Mexico manufacturing facilities to make the most of reduced labor expenses and business-friendly plans.
Lundstedt likewise claimed Volvo anticipates high-volume manufacturing at a prepared battery plant in Sweden to start a number of years behind the initial target of 2029-2030.
Volvo had actually claimed in September it would certainly postpone building and construction of the plant by 1 or 2 years and claimed at the time it doubted if this would certainly influence the beginning of production.
Volvo wishes to go to the center of environment-friendly financial investments, consisting of in zero-emissions trucking, however is improving its approach to readjust for market variables, Lundstedt claimed. That is since it does not wish to be “fighting all the windmills alone, like Don Quixote and Sancho Panza,” he claimed, describing imaginary personalities from the well-known book.
(Reporting by Abhirup Roy in Las Vegas and Marie Mannes in Stockholm, composing by Lisa Baertlein, editing and enhancing by Rod Nickel)
