Volvo Group Leads a New Era of Innovation with its Second Plant in Mexico

Volvo Group is leading a new era of innovation with the establishment of its second plant in Mexico, investing $700 million and creating 2,500 jobs in Ciénega de Flores, Nuevo León.

This project, set to begin operations in February 2026, involves the assembly of conventional vehicles and the production and painting of cabs for Volvo and Mack heavy-duty trucks. “This plant is not just another factory; it’s a statement of where the world is headed. Here, we will manufacture the vehicles of the future: electric trucks that will transform mobility across Latin America,” said Jens Holtinger, Executive Vice President of Volvo Group Trucks Operations. “With this investment, we are not only strengthening our presence in Mexico but also creating an innovation platform that will make a difference in the automotive industry.”

Holtinger emphasized Volvo’s commitment to sustainability and clean technology, highlighting that the new facility will be designed to minimize environmental impact and maximize energy efficiency.

In addition to direct employment, Volvo’s plant will have a multiplier effect on the local economy, creating thousands of indirect jobs along the supply chain. Holtinger confirmed that Volvo will invest in training programs to ensure local employees are equipped with the necessary skills to work at the plant.

Toward Green Mobility

Stephen Roy, Executive Vice President of Volvo Group and President of Mack Trucks, highlighted the scope of the project: “The decision to invest in Nuevo León is strategic. This plant will be a central hub in our global production network, and the capabilities of local talent will be key to driving our mission of leading the transformation toward greener mobility.”

He explained that the focus of this project is on sustainable mobility, as it will be instrumental in the production of electric trucks, helping reduce the carbon footprint of commercial transportation throughout the region.

“The automotive industry is changing, and Volvo is at the forefront of that change. This project symbolizes the future of mobility, where efficiency and environmental responsibility go hand in hand,” Roy stated.

This investment is not only the largest for Nuevo León in 2024 but also a key step in positioning the state as a global center for electric and efficient mobility, according to Samuel García, Governor of Nuevo León.

“This plant is just the beginning. Volvo has invested in the future of Nuevo León, and we are ready to continue moving toward a more prosperous, sustainable state with more opportunities for our people. Today, we begin a new era for our industry and our state,” he expressed.

The governor added that the reasons Volvo chose the state for this historic investment include its world-class logistics infrastructure, a strategic location for global trade, and a high-quality supplier ecosystem, along with the political and economic stability that gives global companies confidence.

Strengthening the Sweden-Mexico Relationship

Sweden's Ambassador to Mexico, Gunnar Aldén, emphasized the importance of this project as a bridge between the two countries: “Volvo's investment strengthens our bilateral relationship and positions Sweden and Mexico as allies in the transition toward a green economy. This is the kind of collaboration that generates a positive long-term impact for our societies.”