Volvo adds third shift at Swedish plant

VOLVO has announced it will add a third shift of workers at its Torslanda, Gothenburg plant in Sweden to meet worldwide customer demand for its models including the next-generation XC90 large SUV.

The move will see about 1300 jobs created at the facility in 2015, bringing the total workforce there to 4600 staff.

Volvo makes its S60, S80, V60, XC70 and XC90 models at the Torslanda plant and the announcement follows the opening of a new body shop at the facility which has lifted production capacity to 300,000 units annually.

Global retail deliveries for Volvo were up by 9.2 per cent in the first nine months this year with a forecast of an all-time annual record of 470,000 cars in 2014.

Boosting the growth will be its new-generation XC90 which made its global debut at the Paris motor show this month. The vehicle is the first of many Volvos to use the Scalable Product Architecture (SPA) developed in-house.

In 2010, Chinese company Zhejiang Geely Holding Group bought Volvo from Ford and in his 2012 financial report the Swedish car-maker’s then CEO and president Stefan Jacoby said the acquisition would provide the means to reach new, bold goals.

“We aim high, with a goal of selling 800,000 cars globally in 2020,” he said.

“In order to reach this, we need to take major development steps in the areas of products, production and competence. Backed by committed owners, we are on track to deliver on the changes needed.”

Geely committed to an $A12.56 billion ongoing investment in 2012 which has so far allowed for the expansion of the Torslanda plant and the development of the SPA platform.

Since the start of the year to the end of September, Volvo has sold 3895 vehicles in Australia. China is fast becoming the largest market for Volvo and is set to overtake the United States with 80,000 sales expected for 2014.

The new XC90 will arrive in Australia next year.