Swedish commercial vehicle major AB Volvo (VOLVY.PK) announced on Friday its plans to establish a new heavy-duty truck manufacturing plant in Monterrey, Mexico, slated to be operational by 2026.
This Monterrey facility represents an investment of approximately $700 million, or 7.2 billion Swedish kronor, dedicated to the production of heavy-duty conventional vehicles for both the Volvo and Mack brands. The plant will be a comprehensive assembly facility, incorporating cab body-in-white production and painting processes.
Monterrey's proximity to the U.S. border and its well-developed infrastructure make it an ideal location for strengthening Volvo's established supply and production ecosystem.
In April, the company revealed that this new plant would supplement its U.S. production capabilities. Volvo anticipates that the Monterrey facility will provide additional capacity to support the growth plans of both Volvo Trucks and Mack Trucks in the U.S. and Canadian markets, as well as bolster Mack truck sales in Mexico and across Latin America.
The company highlighted that growth in North America is a strategic priority, and this investment is part of a broader effort to enhance the robustness and flexibility of its supply chain in the region.
Recently, Volvo announced an agreement to acquire Commercial Vehicle Group's production plant in North Carolina, which manufactures cabs for Mack's heavy- and medium-duty trucks. This acquisition, valued at approximately $40 million, is expected to be finalized in the latter half of this year.
