Volvo is planning a "complete renewal" of its manufacturing products following the construction of a new factory in the United States.
The company announced on Monday that it would invest $500 million for the new plant, adding that officials have set an annual car sales target of 100,000. Volvo is also looking to orient itself closer to the United States consumer market, contributing to the creation of jobs within the automotive industry.
"Volvo Cars cannot claim to be a true global car maker without an industrial presence in the US," Chief Executive Officer Hakan Samuelsson said, according to Uncover Michigan.
The US is an absolutely crucial part of our global transformation and today's announcement makes it perfectly clear that Volvo is in the US to stay."
The 100,000 annual sales target is also a response to the declining purchase of Volvo products. In fiscal year 2014, the company was only able to sell 56,366 products in the United States.
Although company officials remain committed to developing their business in the United States, they may soon look to expand eastward as other countries develop their automotive industries. India, for example, is expected to develop industrial capabilities able to manufacture 7 million vehicles by 2020. The country's automotive sector is one of the fastest-growing in the world.
Volvo was purchased by the China-based Geely Holding Group in 2010 from Ford Motor. It was founded in 1927 in Gothenburg, Sweden.
