Volvo retailers in the U.S. will receive more XC60s due to European production increase

Article by Christian Andrei, on February 10, 2012

As Volvo has increased its production in Europe, its U.S. retailers will be getting an additional 5,000 to 6,000 XC60 mid-sized crossovers this year. This move was made in response to their complaints that Volvo sales were hampered by the limited supply of the XC60. According to John Maloney, CEO of Volvo Cars of North America, more volume is expected this year. Even more will be offered in 2013 and beyond.

Volvo poured a substantial amount of investment into its factory in Ghent, Belgium in the fall. To boost production, Volvo also hired 200 more workers.

Maloney said that because of these investments, there would be 12,000 more vehicles annually to be coursed through different markets beginning this year.

In the past year, the Ghent facility operated three shifts a day to cope with demand for the crossover, S60 sedan as well as other models. When interviewed at the Chicago Auto Show, Maloney said that the XC60 is a product that has been in the market for three years.

He added that it “has been over demand and undersupplied.” Because of this, its supply will be increased this year. He believes that dealers will be pleased with the raised supply for this “hot product.”

In the longer term, Maloney said that a plant that’s under construction in China would result to more vehicles for U.S. retailers. He said that this plant will supply the Chinese domestic market but that Ghent will divert a bigger proportion of the production to the U.S. He confirmed that the plant in China will begin production in 2013.

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