Volvo Group selects Monterrey for heavy-duty truck plant

The Volvo Group has selected Monterrey as the site of its new Mexican heavy-duty truck manufacturing plant. The company had previously announced its plans to build a new facility in Mexico to supplement U.S. production and provide additional capacity to support growth plans of both Volvo Trucks and Mack Trucks in the U.S. and Canadian markets, and Mack truck sales in Mexico and Latin America.

Monterrey, Mexico was selected for the new manufacturing facility due to its logistical efficiencies. (Photo: Volvo Group)

The Mack Lehigh Valley Operations (LVO) in Macungie, Penn., and the Volvo New River Valley (NRV) plant in Dublin, Va., will continue to be the Group’s main North American heavy truck production sites. The Monterrey plant will focus on production of heavy-duty conventional vehicles for both brands.

The approximately USD$700 million (SEK 7.2 billion) investment in the new plant will result in a complete conventional vehicle assembly facility, including cab body-in-white production and paint. The plant is expected to be operational in 2026.

Volvo Group said Monterrey was selected as the site due to its significant logistical efficiencies for supporting sales to the southwestern and western regions of the U.S., and to Mexico and Latin America. Its proximity to the U.S. border and well-developed infrastructure “make it an ideal location for building a mature supply and production ecosystem,” it added.

The investment in the new facility is said to be part of a comprehensive effort to increase the strength and flexibility of the company’s industrial footprint and supply chain in North America. Another step recently announced by Commercial Vehicle Group (CVG) on August 1 is Volvo Group’s intent to acquire CVG’s production plant in Kings Mountain, N.C. – which produces cabs for Mack’s heavy- and medium-duty trucks – for approximately USD$40 million (SEK 410 M). That agreement is expected to close in the second half of this year.