Volvo to invest $700M in Mexican plant, to acquire plant in North Carolina

Volvo (VLVLY) will build its new Mexican heavy-duty truck manufacturing plant in Monterrey. As announced on April 11, the plant will supplement the Group’s U.S. production and provide additional capacity to support the growth plans of both Volvo Trucks and Mack Trucks in the U.S. and Canadian markets, and Mack truck sales in Mexico and Latin America. The plant is expected to be operational in 2026. This includes an agreement to acquire Commercial Vehicle Group’s (CVGI) production plant in North Carolina, which produces cabs for Mack’s heavy- and medium-duty trucks, for approximately $40M. The agreement was announced August 1 by CVG and is expected to close in the second half of this year. The Monterrey plant represents an investment of approximately $700M and will focus on production of heavy-duty conventional vehicles for the Volvo and Mack brands. It will be a complete conventional vehicle assembly facility including cab body-in-white production and paint.