Volvo Cars Plans to Double Investment to U.S. Plant

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Volvo Cars is planning to double its investment in its first U.S plant, according to a person familiar with the plans.

The first U.S. plant in Charleston, South Carolina is currently under construction, and after the double investment, which would lead to a total cost of $1 billion, the plan will add 1,900 workers to the 2,000 originally recruited by the company before its 2018 opening. The spokesperson of Volvo Cars USA, Russell Datz, didn’t respond to the request for comment.

On Monday, Berkeley County Council agreed to give economic incentives for the project of $3.5 million. “There are terms that other parties are agreeing to related to this economic announcement that we don’t think it’s our business to announce,” Councilman Josh Whitley said.

“We are respecting the company’s wishes not to announce the amount yet but it’s substantially more than that,” Whitley said. “I wouldn’t vote for these types of incentives based on that amount.”

In August, global sales increased 8.7% to 359,798, while U.S. deliveries dropped 7.3%. The company said that it will make up the shortfall by the end of 2017. Currently, the company is expanding its manufacturing base and product lineup rapidly for its goal to reach global light-vehicle sales of 800,000 by 2020.

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