Volvo to invest $1.1 billion in electric conversion at its factory in Sweden

Volvo has announced that it will invest approximately $1.1 billion in the Torslanda factory in Sweden in the coming years. In this context, the facility is planned to be prepared for the production of new generation electric Volvo models.

With the investment to be made, Volvo will not only establish a battery production facility in the said factory, but also reduce the energy consumption in the paint shop and create a large casting area for aluminum body parts.

In his statement on the subject, Volvo CEO Håkan Samuelsson said, “With these investments, we are taking an important step towards our fully electric future and getting ready for more advanced, better electric Volvos. Torslanda is our largest factory and as we move towards becoming an all-electric car manufacturer by 2030. It will play a very important role.” said.

According to the Swedish manufacturer, the establishment of the large casting site will be the most exciting update for the factory. Because with this technique, the back floor of the vehicles will be cast as a single piece and there will be mounting points for suspension arms and electric motors on this piece. Thus, approximately 100 parts will be removed from each vehicle.

According to Volvo’s statement, with the ‘mega casting’ technique, both the weight will decrease and the energy efficiency during production will increase. In addition, money will be saved as the production process is simplified. The same technique is used by the US electric vehicle manufacturer Tesla in the production of Model Y.

The Torslanda factory was opened in 1964 and has an annual production capacity of 300,000 vehicles. It is not yet clear when the updates to be made within the scope of the new investment will be completed. On the other hand, the first vehicle to be produced with the new technique may be the production version of the Concept Recharge. The model, which is announced to be named Embla, will be released in 2025.