Volvo to continue with plan for Mexico truck factory


Volvo chief executive Martin Lundstedt. — Reuters

LAS VEGAS: Sweden’s Volvo Group is proceeding with its planned US$700mil heavy-truck factory in Monterrey, Mexico, chief executive Martin Lundstedt says, even as President-elect Donald Trump threatens to impose US tariffs on imports of vehicles and other goods.

The maker of Volvo and Mack semi trucks has targeted growth in North America, which accounts for about 30% of company revenue, as a strategic priority and expects the plant to start operations in 2026.

It expects the factory to deliver vehicles to the United States, Mexico and Canada, as well as to Latin America.

Trump has said that immediately after his Jan 20 inauguration, he will sign all necessary documents to begin charging a 25% tariff on imports from Mexico and Canada unless those countries clamp down on illegal immigration and fentanyl trafficking. — Reuters

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