The decision to add a second manufacturing site to Zhangjiakou, China, where production began earlier this fall, was made after receiving "strong demand" for the next-generation small electric crossover/SUV, the company said. First customer deliveries are scheduled for late 2023.
The European plant will be used to increase production capacity to meet expected demand for the EX30 in Europe, as well as for global exports. The plant already produces the XC40 and C40 electric models.
Volvo underlined its ambition to build its cars where it sells them as much as possible, noting that the top-selling XC60 and XC40 models are already produced in both Europe and China.
Having two separate production sites around the world also adds production flexibility for what is expected to be one of Volvo's best-selling models. In these challenging times of supply chain issues and a potential clash between the European Union and China over electric car imports, flexibility is something to consider.
Jim Rowan, Volvo Cars’ Chief Executive explains: “Our ambition is to sell the EX30 around the world at an attractive price point, easing the transition to driving an electric Volvo car for more people while also contributing to company margins. Adding production in Ghent is a logical move as we aim to capture the strong demand for our exciting small electric SUV across the globe.”
Volvo EX30
The Volvo EX30 was revealed earlier this year and will be sold worldwide, including the U.S., where prices for the rear-wheel drive version will start at $36,245. The all-wheel drive version will cost significantly more - starting at $46,095.
It will be interesting to see if Volvo will be able to maintain the prices with the European production (usually considered more expensive than the Chinese plants).
Source: Volvo
