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Volvo CEO says plan for Mexico truck factory ongoing despite US tariff threat

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Sweden's Volvo Group is proceeding with its planned $700-million heavy-truck factory in Monterrey, Mexico, CEO Martin Lundstedt told Reuters on Wednesday, even as President-elect Donald Trump threatens to impose U.
Volvo's CEO, Martin Lundstedt, has confirmed that the company's plans to build a new truck factory in Mexico are still in progress, despite the U.S. threat of imposing tariffs on Mexican imports. This statement was made in response to concerns raised by the U.S. government regarding the potential for increased tariffs if Mexico does not address issues related to migration and drug trafficking. Lundstedt emphasized the strategic importance of the Mexican market for Volvo, highlighting the company's commitment to its investment in the region. The factory, which is part of Volvo's broader strategy to expand its manufacturing footprint in North America, aims to leverage Mexico's advantageous trade agreements and proximity to the U.S. market. Despite the tariff threats, Volvo remains optimistic about the economic benefits and the potential for growth in Mexico.

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[ https://www.reuters.com/business/autos-transportation/volvo-ceo-says-plan-mexico-truck-factory-ongoing-despite-us-tariff-threat-2025-01-08/ ]