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VOLVO CARS TO TRIPLE ELECTRIC PRODUCTION CAPACITY IN GHENT AFTER STRONG YEAR OF ELECTRIFIED CAR SALES

Date: 11 Jan 2021 Author Type: Press Release
Author: Volvo South Africa
Source: Volvo South Africa
Volvo Cars is tripling electric car manufacturing capacity at its plant in Ghent, Belgium as it prepares to meet fast-growing demand for its Recharge line-up of chargeable cars.

The capacity increase comes as Volvo Cars also reports its full-year sales results for 2020, which showed a strong growth in demand for the company’s Recharge models. The share of Recharge cars as a percentage of total sales more than doubled in 2020, compared to 2019.

By 2022, electric car capacity at the Ghent plant will have more than tripled from today’s levels and amount to around 60 percent of the plant’s total production capacity.

Ghent is currently preparing to take a second fully electric Volvo model, based on the CMA modular vehicle architecture, into production later this year. The plant already builds the XC40 Recharge, the company’s first fully-electric car, as well as a plug-in hybrid version of the XC40.

“Our future is electric and customers clearly like what they see from our Recharge cars,” said Javier Varela, head of global industrial operations and quality. “As we continue to electrify our line-up and boost our electric production capacity, Ghent is a real trailblazer for our global manufacturing network.”

Volvo Cars is committed to becoming a premium electric car company and in coming years, the company will launch several fully electric cars. By 2025, it aims for its global sales to consist of 50 percent fully electric cars, with the rest hybrids.

While Ghent is the first of its global manufacturing network to start building fully electric cars, the company also has plans to increase electric car manufacturing capacity at its other facilities around the globe.

Last month, Volvo Cars also announced it will assemble electric motors at its powertrain plant in Skövde, Sweden, and plans to establish complete in-house e-motor production by mid-decade. It will invest 700 million SEK to this end in the coming years. The company is also investing significantly in the in-house design and development of e-motors for the next generation of Volvo cars.