Swedish carmaker Volvo cars will invest SEK700mn ($82mn) to prepare its facility in Skovde, Sweden for electric motors production by 2025.
The Skovde plant, which was last modernized in 1975 has been an integral part of Volvo, with a capacity to produce 60,000 engines annually. Recently, the automaker’s holding company, Geely, collaborated with Daimler to co-develop hybrid powertrains.
Initially, Volvo will only assemble new motors at the plant, gradually transitioning to full-scale production by 2025. By this time, the company intends to establish itself as an electric vehicle company, with 50pc of sales from this plant being for fully electric vehicles and the balance for hybrids. A part of the facility will still be dedicated to producing internal combustion engines, to be operated by a subsidiary of Volvo.