Volvo Cars will assemble electric motors at its powertrain plant in Skövde, Sweden, and plans to establish complete in-house e-motor production by the middle of the decade.
The company is aiming to invest 700 million Swedish Krona (SEK) to achieve this objective over the coming years and is committed to becoming a premium electric car company. It is pushing towards global sales consisting of 50 per cent fully electric cars by 2025, with the rest hybrids.
The Skövde operations have been part of the Volvo Cars story ever since the company’s founding in 1927. Adding e-motor production to the plant’s activities means the historic ground in Skövde will be a part of the company’s future as well.
Volvo Cars announced earlier this year that it is investing significantly in the in-house design and development of e-motors for the next generation of Volvo cars. With the planned investments in Skövde, it now takes the first steps towards in-house e-motor assembly and manufacturing.
In a first stage, the Skövde facility will assemble e-motors. At a later stage, the company intends to bring the full manufacturing process for e-motors in-house into a facility in Skövde.
Volvo Cars Senior Vice President of Industrial Operations and Quality Javier Varela said: “The very first Volvo from 1927 was powered by an engine built in Skövde. “The team is highly skilled and committed to delivering on the highest quality standards. So it is only fitting that they will be a part of our exciting future.”