as a brave general in the war “- Swedish newspaper Svenska Dagbladet

Has life any sense? What is truth? They and a few others count as the eternal questions of philosophy.

Since 1955, one of the VCC’s line corridor in Gothenburg adds yet another:

Factory Building in the US – or not?

Monday, March 30, 2015, we received the answer, here in telegraphic form: VCC must be from its own resources to build a new assembly plant in the United States. Cost is just over 4 billion STOP. Decisions exactly was expected within a few months STOP. The plant will have a capacity of 120,000 cars and be ready in summer 2018 STOP. The decision was taken at Volvo’s latest board meeting two weeks ago STOP. This would give Volvo a fifth assembly plant after Gothenburg in Sweden and Gent in Belgium – Chengdu and Daqing in China STOP.

US adventure began September 20, 1955 when a first stooped and FISHEYED PV 444 lifted off on American soil from the Johnson Line M / S Canada. Then it became the United States, along with Sweden, Volvo’s largest market.

But the dollar rate restless movements transformed the dream in the West to a constantly ticking time bomb. It has previously been at Volvo Cars said that every lost crown in the dollar meant a loss of nearly 3 billion annually and former CEO Fredrik Arp said that Volvo only make money in the US only when the dollar gone over SEK 7.50.

Factory The news is a necessary force vengeance. But why did it now?

First, Volvo must do as a brave general in the war – self go first in line to reverse a catastrophic development. In the US dealers themselves take great expense when Volvo now to pick up a market that halved to around 58,000 cars annually since 2004, when the old XC90 was at its peak. With the new XC90 and V90 at the time, the goal of “middle-long” term to up to 100 000 cars. Since even more.

“Factory news is a necessary force vengeance. But why did it now?”

It is also likely Volvo wants to put a stumbling towards emerging markets Brazil through a new US factory. It has previously been speculated about a factory in South America and an event that looks like a thought is that Hakan Samuelsson recently placed the experienced Lex Kerssemakers as head of the “Americas” which includes both North and South America.

other major reason is simple: Volvo Cars has until now been fully locked in resources, focus and money with the two factories in China, and the new so-called SPA platform and engine family. Unlike in China, where the assembly plants was paid by Geely and different Chinese regions, Volvo must now take anywhere from own cash flow and loans. And only last year, Volvo PV cautious profit – and can afford.

A fourth reason is that Volvo, apparently, had been slammed to entertain themselves with any other manufacturer in the US – where fear of technology theft to China is great.

Volvo is late out of the starting blocks compared to the competition. BMW builds since 1995 big SUVs in Spartanburg, South Carolina. That same year, the Mercedes slammed up its plant in Tuscaloosa, Alabama and just completed three weeks ago stressed Mercedes, Volvo, by adopting a second factory in South Carolina. Audi and Volkswagen, decided in 2013 on a factory in Mexico.

Lars Wrebo repeat a mantra: “You have to produce the car where it is sold.” And exactly where they ought to employees in Sweden tighten up the ears: With growth in Asia, India and South America and factories from 2018 in both the US and China – should we be concerned about jobs in Sweden and Ghent? The answer is no short and medium term but in the long term, the answer should be yes. Torslanda has a capacity of 300,000 cars and Ghent, Belgium 270 000 cars – and in a mature European market selling Volvo only around 240,000 cars.