Volvo CEO says plan for Mexico truck factory ongoing despite US tariff threat

Las Vegas: So, Volvo is moving ahead with its big truck factory in Monterrey, Mexico. The CEO, Martin Lundstedt, said they’re not backing down, even with the looming threat of tariffs from the U.S.

This factory is a $700 million project, and it’s a big deal for Volvo. They’re looking to boost their presence in North America, which is super important for their revenue. The plan is to kick off operations by 2026, and they’ll be shipping trucks to the U.S., Canada, and even Latin America.

Now, Trump has been pretty vocal about slapping a 25% tariff on imports from Mexico and Canada once he takes office. He’s got some strong views on immigration and drug trafficking, which he says are tied to these tariffs.

Lundstedt mentioned that the project is still in its early stages, and they’re keeping their options open. He made it clear that this factory isn’t meant to replace their U.S. facilities. Depending on how the tariff situation plays out, they might adjust where the trucks go.

Currently, all the trucks Volvo sells in the U.S. come from their American factories. They’ve been putting money into expanding their plants in Virginia, Maryland, and Pennsylvania to keep up with demand.

The whole tariff talk has really shaken things up in the auto industry. Many carmakers, like BMW and Toyota, have set up shop in Mexico to take advantage of lower costs.

On another note, Lundstedt also shared that they’re pushing back the start of a battery plant in Sweden. They initially aimed for 2029-2030, but now it looks like it’ll be delayed by a couple of years.

Volvo is keen on leading the charge in green investments, especially in zero-emissions trucks. But they’re also being smart about it, adjusting their plans based on market conditions. They don’t want to be out there fighting alone, like Don Quixote, he joked.