Taking into account the facts that Volvo is now owned by China’s Geely and how poorly the European automotive market has been recently, we would have definitely understood if Volvo moved production of its products out of its home market. And yet, the automaker has confirmed that it will be investing billions of dollars into new platforms and engines that will be made in Sweden. On a global scale, Volvo is making roughly $11 billion of investments, and close to half of that is being earmarked for Sweden for plant expansion and upgrades.
The new Scalable Product Architecture (SPA) platform will be the used as the basis for most future Volvo products starting with the next-generation XC90 that will be debuting at the end of 2014. SPA will be used to make up two-thirds of Volvo’s sales, and gives Volvo a quicker and easier break from Ford-derived platforms. As for the Volvo Engine Architecture (VEA) family of engines, there are really no details about this mill except that it will be a four-cylinder that is more fuel efficient than current engines.
Scroll down for the Volvo press release.