According to Reuters, on August 23, Swedish truck manufacturer Volvo Group announced that it has selected Monterrey in northern Mexico as the site for its new heavy-duty truck factory in North America.
Back in April of this year, Volvo Group announced its plans to build a plant in Mexico to provide additional capacity support for the growth plans of Volvo Trucks and Mack Trucks in the U.S. and Canadian markets, as well as to support Mack's sales operations in Mexico and Latin America.
In a press release on August 23, Volvo Group stated that the investment for the new factory will be approximately $700 million, with operations expected to begin in 2026. The Monterrey plant will focus on producing heavy-duty conventional vehicles under the Volvo and Mack brands and will be a full vehicle assembly facility, including the production and painting of cab bodies.
Volvo Group highlighted that Monterrey's proximity to the U.S. border, its developed infrastructure, and efficient logistics make it an ideal location for establishing a mature supply and production ecosystem.
The Volvo Group views the North American market as a strategic priority and is working to enhance its industrial footprint, supply chain strength, and flexibility in the region. The investment in Monterrey is part of these efforts. Additionally, the group announced the acquisition of a production plant in North Carolina from Commercial Vehicle Group for approximately $40 million. This plant will produce cabs for Mack's heavy-duty and medium-duty trucks, with the transaction expected to be completed in the second half of this year.
