Volvo is building a new factory for electric cars in Slovakia. The Swedish car maker has announced this. It will be Volvo’s third European factory, next to those in Ghent and Gothenburg, Sweden.
This involves an investment of approximately 1.2 billion euros. The factory will be located near Kosice, in the east of the country. Construction is expected to start next year and production of the next generation of all-electric Volvos is set to begin in 2026.
The Slovakian factory will be able to deliver up to 250,000 cars per year, with scope for further expansion. The Volvo management does not yet want to say which models are involved.
The factory is well located, according to Volvo, with good connections to the rest of Europe and access to suppliers. The Slovakian government’s support “was also a key element” in the decision, it said in a press release.
It will be Volvo Cars’ first new European production site in nearly 60 years. The Swedish factory in Torslanda (Gothenburg) opened in 1964, the one in Ghent a year later. Those two factories can currently make 600,000 cars per year.
The Ghent factory is currently good for more than 200,000 cars per year, but in the long term, that should also increase to 250,000, as in Slovakia.
The Ghent management does not expect any negative consequences from the arrival of the factory in Slovakia. “On the contrary, this is a story of growth for Volvo Cars, in which Kosice will now also play a role in addition to Ghent and Torslanda.
Volvo Cars needs this extra production capacity to make the shift to full electrification and Ghent still plays a key role in this. That will continue to be the case in the future as well.”