Volvo To Invest 1.2 Billion Euros in New EV Plant in Slovakia

source: Canva Pro

Published 1 July 2022

On 1st July 2022 Volvo announced that it will invest 1.2 billion euros to build a new electric vehicle (EV) plant in Slovakia –  its first in Europe since 1965 .

The company notes that incentives offered by the Slovak government were a “key factor” in the decision.

For Volvo Cars, it will be its third plant in Europe and will build EVs only, in line with the company’s ambition to produce EVs exclusively  by 2030 and go climate-neutral by 2040.

“Expansion in Europe, our largest sales region, is crucial to our shift to electrification and continued growth,” Chief Executive Jim Rowan said in a statement.

The facility in the Kosice region in eastern Slovakia is designed to produce up to 250,000 cars per year. The plans also allow for future expansion, the company said in a statement.

The investment will create 3,300 jobs around the city of Kosice.  The area has long had high unemployment compared with the western part of the country.

Volvo Cars’ other European plants are  its original plant in Torslanda, Sweden, and the factory in Ghent, Belgium.

Volvo has yet to reveal which models will be built at the Slovakian plant.