Volvo has announced plans to build a new factory in the United States.

Volvo has announced plans to build a new factory in the United States.

The company is still deciding where the plant will be located but they confirmed plans to invest approximately $500 (€461) million into the new manufacturing facility. 

While Volvo was coy on specifics, they said the new plant will allow them to "meet and ultimately exceed" their sales targets in the United States.  The company also said the plant will "help accelerate the introduction of build-to-order in the US" and serve both domestic and international market markets while limiting the impact of currency fluctuations.

In a statement, Volvo CEO Håkan Samuelsson said “The US is an absolutely crucial part of our global transformation and today’s announcement makes it perfectly clear that Volvo is in the US to stay.”

Volvo to build a new plant in the United States