Geely-owned (0175.HKG) Volvo will spend US$500 million on building a new vehicle plant in a yet-unnamed US state, The Wall Street Journal reported. The decision comes after sales last year grew worldwide, driven largely by Chinese and European markets. But American sales were down 8%, well short of the number needed to prove viability. Officials at the company said the preference for the US over Mexico, where a number of car manufacturers have moved recently, was based on proximity to a a major market, attractive labor rates and protection against currency fluctuations.
Categories