# Volvo Car considers opening third plant in Europe
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-11-15
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Volvo Cars considering building third plant in Europe to
Meta Description: Volvo Cars is contemplating constructing a new plant in Europe to increase production beyond 1.2 million vehicles annually, as reported by Reuters and
URL: https://financedigest.com/volvo-car-considers-opening-third-plant-in-europehtml

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BERLIN (Reuters) -Volvo Cars is considering building a third plant in Europe in order to boost its production capacity beyond 1.2 million vehicles per year, a company spokesperson said on Sunday.

German autos publication Automobilwoche reported earlier on Sunday that the company was planning on building another European plant by the middle of the decade to meet its production target of 1.2 million vehicles a year, quoting Volvo Cars CFO Bjorn Annwall.

A company spokesperson said by email to Reuters that the company was already able to produce 1.2 million vehicles annually at its two existing factories and wanted to increase its capacity beyond this amount, but no plans had been finalised as of yet.

What we can [say at this stage is that no decision has been made](https://www.financedigest.com/in-a-stadium-of-their-own-migrant-workers-say-their-sweat-made-world-cup-happen.html "In a stadium of their own, migrant workers say their sweat made World Cup happen"). However, Volvo [Cars has grown rapidly over the past decade and aim to continue to grow](https://www.financedigest.com/uk-car-sales-hit-30-year-low-in-2022-but-could-grow-15-this-year-smmt.html "UK car sales hit 30-year low in 2022, but could grow 15% this year – SMMT") at a similar pace going forward,” the spokesperson said to Reuters.

The Gothenburg-based company, which became Sweden’s second largest listing yet after its IPO in late October with a [valuation of $18 billion](https://www.financedigest.com/allianz-puts-n26-stake-up-for-sale-at-3-billion-valuation-ft.html "Allianz puts N26 stake up for sale at  billion valuation – FT"), currently produces around 800,000 cars a year at its two factories – one in Sweden and the other in Belgium.

We [need both our plants in Europe..](https://www.financedigest.com/europe-power-firms-need-1-5-trillion-euros-in-margin-calls-equinor-says.html "Europe power firms need 1.5 trillion euros in margin calls, Equinor says"). but we need more. That’s why we want to [build a third plant,”](https://www.financedigest.com/bosch-to-build-215-million-plant-in-central-mexico.html "Bosch to build 5 million plant in central Mexico") Annwall said to Automobilwoche. Where that plant will be located is not yet clear, he said.

(Reporting by Victoria WalderseeEditing by Raissa Kasolowsky)


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