Volvo announces huge £800m investment into ‘next-generation electric car production’

Volvo has announced that it will invest SEK 10 billion (£800m) into its next-generation EVs, as the brand aims to ‘reach new milestones’. 

The Swedish firm has already committed to electrification, with all of its models now sold as a hybrid or an EV, and the C40 Recharge being its first electric-only model. Volvo has now pledged the huge investment into its next generation of electric cars – not least the upcoming battery-powered replacement for the brand’s flagship XC90. 

This £800m of funding will go into the firm’s Torslanda factory in Sweden, which currently produces the vast majority of its range, including the S60, V90 and XC60.

Volvo intends to make its operations more sustainable in the coming years, with the brand set to introduce a new method of producing aluminium body panels, which is said to be a greener, more cost-effective way of manufacturing vehicles. 

This casting of major parts of the floor structure is said to reduce weight, and therefore improve the efficiency and range of an electric car, while also freeing up more interior space.

The paint shop will also be upgraded with new equipment and implementation of new processes, which will help to reduce energy consumption and emissions. The announcement follows Volvo’s recently revealed partnership with Northvolt to develop leading batteries for its future EVs. 

Håkan Samuelsson, chief executive of Volvo Cars, said: “With these investments, we take an important step towards our all-electric future and prepare for even more advanced and better electric Volvos.

“Torslanda is our largest plant and will play a crucial role in our ongoing transformation as we move towards becoming a pure electric car maker by 2030.”

Volvo’s Torslanda plant has been in operation since 1964, and employs around 6,500 people with an annual production capacity of 300,000 cars per year.