Volvo to build new truck manufacturing plant in Mexico

Friday, 12 April 2024 23:30:09 (GMT+3)   |   San Diego
       

Sweden-based Volvo will build a new truck plant in Mexico, which will be added to the bus production plant it has in the vicinity of Mexico City, according to reports in the Mexican press.

The new truck plant will be to complement Volvo's production in the United States to boost sales of its Volvo Trucks and Mack trucks trademarks throughout the American continent, according to company statements, mentioned in press reports.

The amount of investment, location and production capacity was not disclosed. However, the Swedish company's plan is to build a plant of around 158,000 square meters and start production of heavy trucks in Mexico in 2026.

Data from the International Organization of Motor Vehicle Manufacturers (OICA), seen by SteelOrbis, show that in 2023 Mexico was the world's fifth largest producer of heavy trucks in the world with a global share of 6 percent, surpassed by the United States (9 percent), India (9 percent), Japan (13 percent) and China (44 percent).

Currently in Mexico there are 12 companies producing heavy vehicles (trucks and buses): Freightliner, International Truck, Kenworth, Mercedes-Benz Autobuses, Isuzu, Foton, Volkswagen Camiones y Autobuses, Volvo Buses, Hino, Dina, MAN and Shacman (Shaanxi Automobile Group). However, 95 percent of production is concentrated in three companies: Freightliner (56 percent), International Truck (31 percent) and Kenworth (8 percent).

Volvo has a bus plant in Tultitlán, in the central state of Mexico. That city is located 26 miles from Mexico City, the largest market in the country.

In 2023, of the nearly 223,000 heavy vehicles that were manufactured in Mexico, Volvo Buses only contributed 0.5 percent of the total.


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