Volvo’s engine plant in Skövde, Sweden, will soon be used for the assembly of electric motors. With this, the brand is taking a new step in setting up its own production of electric motors.
In the coming years, Volvo will be pumping an amount of € 68 million into setting up its own electric motor production. First of all, the brand is adding the assembly of electric motors to the portfolio of its engine factory in Skövde, Sweden. Initially, it is purely about assembling electric motors, but in time the entire production process for electric motors must be housed in the Swedish production facility.
According to Volvo, having in-house control of the entire electric motor production process has the advantage, among other things, that it can optimize the electric motors and thus the electric powertrains specifically for its models.
Volvo has big plans in the electrical field. In the coming years, the brand will increasingly focus on plug-in hybrid powertrains and, for the long term, will focus entirely on purely electric powertrains. Volvo has set a target to have half of its international sales consist of fully electric cars by 2025. The remaining 50 percent will have a hybrid powertrain.
Earlier this year, Volvo opened the gates of a new development center for electric motors in Shanghai, China. Incidentally, Volvo also develops electric motors in home bases in Gothenburg. What will happen over time with the production of combustion engines in Skövde? This will be transferred to a subsidiary of Volvo: Powertrain Engineering Sweden. In time, this toko will have to be merged with the activities of parent company Geely.