Today we announce plans for a new car plant in Europe, bringing beautiful Slovakia into the wider Volvo Cars family.
Following Torslanda and Ghent, we’re building our third factory in Europe in Kosice.
We have some ambitious plans: by 2030, we want to be a fully electric mobility company and we want to continue growing globally.
In order to make sure that we deliver on these plans, we need to expand our current manufacturing footprint. That’s why we’ve decided to open a new state-of-the-art, electric only car factory in the city of Kosice located in the eastern part of Slovakia.
The new plant is scheduled to become operational in 2026, with construction planned to start next year. It represents an investment of about EUR 1.2 billion, of which about 20 per cent is expected to be funded by government incentives. The plant will be capable of building up to 250,000 electric cars per year.
The plant will create thousands of new jobs in the region. Together with our Torslanda and Ghent plants, the Kosice facility will create a triangle of Volvo car making in Europe, neatly covering our largest sales region.
“We have a clear focus on becoming a pure electric mobility brand by 2030, which is in line with our purpose,” says our chief executive Jim Rowan. “Expansion in Europe, our largest sales region, is crucial to our shift to electrification and continued growth. I am very pleased to expand our Volvo Cars production footprint into Slovakia and look forward to welcoming new colleagues and partners on the journey ahead.”
The Slovak government is also pleased with our decision, as Prime Minister Eduard Heger says: “The new Volvo Cars plant is important for us since it will improve the social and economic situation in the region and produce only electric cars, which provides the Slovak automotive industry with a competitive perspective in the new ecological era.”
“I am really very happy that today we can announce that Volvo Cars is coming to Slovakia for its first expansion in Europe since the 1960s,” adds Richard Sulik, the Minister of Economy. “Personally, I am very pleased that Slovakia has succeeded in the competition for this mega investment, which will bring development and many jobs in the eastern part of Slovakia, with lots of direct and indirect job opportunities.”
Construction of the Kosice plant is scheduled to start in 2023, after which equipment and production lines will be installed from 2024. Series production of next-generation, pure electric Volvo cars in Kosice is planned to start in 2026.
“We look forward to welcoming new members to the Volvo Cars Kosice team and the global Volvo Cars family, as well as establishing new collaborations and partnerships in the region,” said Javier Varela, our chief operating officer. “It will be a modern workplace, in a state-of-the-art plant that centers on sustainability and safety.”
Of course, in line with our ambition to have climate-neutral manufacturing by 2025, the new plant will use only climate neutral energy. It will also be designed to be a leader in sustainable and efficient premium electric car production with an optimised layout and logistics flow, while we aim for the highest global standards in energy and environmental efficiency.