© Volvo Cars
Electronics Production |
Volvo Cars to produce electric motors in central Southern Sweden
The company says it will assemble electric motors at its powertrain plant in Skövde, Sweden, and plans to establish complete in-house e-motor production by mid-decade.
To make this happen, Volvo Cars will invest SEK 700 million (about EUR 68 million) to this end in coming years.
The company reiterates that it is aiming to become a top player within the electric transformation of the industry, aiming for its global sales to consist of 50% fully electric cars by 2025, with the rest hybrids.
The Skövde operations have been part of the Volvo Cars story ever since the company’s founding in 1927. “Adding e-motor production to the plant’s activities means the historic ground in Skövde will be a part of the company’s future as well,” the company writes in a press release.
Volvo Cars announced earlier this year that it is investing significantly in the in-house design and development of e-motors for the next generation of Volvo cars. With the planned investments in Skövde, it now takes the first steps towards in-house e-motor assembly and manufacturing.
In a first stage, the plant will assemble e-motors. At a later stage, the company intends to bring the full manufacturing process for e-motors in-house into a facility in Skövde.
“The very first Volvo from 1927 was powered by an engine built in Skövde,” says Javier Varela, senior vice president of Industrial Operations and Quality, in the press release. “The team is highly skilled and committed to delivering on the highest quality standards. So it is only fitting that they will be a part of our exciting future.”
Design and development of the company’s electric motors takes place in Gothenburg, Sweden and Shanghai, China. Earlier this year Volvo Cars opened a new electric motor lab in Shanghai, in addition to ongoing e-motor development in Gothenburg, Sweden and battery labs in China and Sweden.
The remaining activities at the Skövde engine plant, focusing on the production of internal combustion engines, will be transferred to a separate subsidiary of Volvo Cars, named Powertrain Engineering Sweden (PES). PES is intended to be merged with Geely’s combustion engine operations, as previously reported.
