Volvo Group has announced plans to construct a new heavy-duty truck manufacturing facility in Monterrey, Mexico. This move is a key part of the company’s strategy to meet the growing demand for Volvo Trucks and Mack Trucks in the U.S., Canada, and Latin America. The new plant is scheduled to be operational by 2026.
Monterrey was selected for its strategic location, offering a significant logistical edge. Situated near the U.S. border, the city provides streamlined access to critical markets in the southwestern and western United States, as well as throughout Mexico and Latin America. The city’s infrastructure further supports Volvo Group’s vision of establishing a strong production and supply chain network in the region.
The project, backed by an investment of around $700 million (SEK 7.2 billion), will focus on manufacturing heavy-duty conventional vehicles for the Volvo and Mack brands. The plant will be fully equipped for the complete assembly process, including cab production and painting.
This development is part of a broader push by Volvo Group to strengthen its industrial footprint in North America. As part of this strategy, the company has also agreed to acquire a production plant in North Carolina from Commercial Vehicle Group (CVG), which currently manufactures cabs for Mack’s heavy- and medium-duty trucks. The purchase, valued at $40 million (SEK 410 million), is expected to be finalized in the latter half of this year.
These initiatives reflect Volvo Group’s commitment to scaling its production capabilities in response to the increasing demand for heavy-duty trucks across the North American market. Through strategic investments and expansion, the company aims to reinforce its position as a leading player in the industry.
DON’T MISS | Auto Industry Rallies to Preserve Inflation Reduction Act Ahead of U.S. Election
