Volvo Cars to invest P56.2 billion for electric vehicle production 

Volvo Cars is making a major commitment to electric mobility, pledging 10 billion SEK (Swedish Krone) or more than Php 56.2 billion towards upgrading its Torslanda manufacturing plant in Sweden to produce the next generation of fully electric vehicles (EVs). 

A Volvo electric vehicle as sleek and sophisticated as this requires some serious money 

“Today is a great day for the Torslanda plant as we are making it fit for the future with this investment package,” said Volvo Cars head of engineering and operations Javier Varela. “Our future as a company is all-electric and that requires a variety of upgrades across the plant, to ensure that Torslanda can continue to build premium electric cars of the highest quality.”

This follows a recent announcement by the carmaker and leading EV battery cell supplier Northvolt. The two Swedish companies will jointly funnel 30 billion SEK (over Php 168.6 billion) towards developing and manufacturing batteries for future Volvo EVs. Both investment plans move Volvo closer to its goal of being a fully electric car company by 2030. 

Volvo is one of the first automakers to invest in mega casting of aluminum EV body parts 

The factory will feature mega casting of major vehicle body parts from aluminum, seen to reduce weight, improve energy efficiency, and extend operating range. This will also give Volvo designers the freedom to maximize the vehicle’s interior, contributing to its versatility. As one of the first automakers to adopt it, Volvo says that mega casting is the most significant part of the investment package, subject to Swedish environmental permits.  

A new battery assembly plant will place battery cells within the floor structure of the vehicle. Meanwhile, the body assembly shop will be refurbished to accommodate future Volvo EVs. 

The company's sprawling Torslanda plant produces 300,000 vehicles yearly

Upgrades will also be implemented on the paint shop, with new machinery and processes forthcoming. These are expected to significantly reduce energy consumption and emissions. The logistics area will also be updated to optimize the transport of goods and components into the factory. To go with these enhancements, Volvo will also set up personnel facilities such as break areas, locker rooms, and offices to improve staff working conditions.   

Opened in 1964, Volvo’s Torslanda plant is one of the automaker’s longest-operating manufacturing sites. It employs around 6,500 workers spread across three shifts, with a production capacity of 300,000 cars annually.

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