The Volvo Group has selected Monterrey, Mexico, as the site for its new heavy-duty truck manufacturing plant, which is expected to become operational in 2026. This facility will enhance Volvo’s production capacity in North America, supplementing its existing US operations to support the expansion plans of Volvo Trucks and Mack Trucks in the US and Canadian markets.
The plant, representing an investment of approximately US$700m, will focus on the production of heavy-duty conventional vehicles for both the Volvo and Mack brands. The facility will be a comprehensive assembly plant, including cab body-in-white production and painting.
Monterrey was chosen for its logistical advantages, including its proximity to the US border and well-developed infrastructure, which the Volvo Group says will create an efficient supply and production ecosystem. This location will also facilitate better support for sales across the southwestern and western regions of the USA, in addition to Mexico and Latin America.
This investment is part of the Volvo Group’s broader strategy to strengthen and expand its industrial presence and supply chain in North America. In addition to the Monterrey plant, the Group has also agreed to acquire Commercial Vehicle Group’s production plant in North Carolina for approximately US$40m. The North Carolina facility, which produces cabs for Mack’s heavy- and medium-duty trucks, is expected to be integrated into the Volvo Group’s operations by the second half of this year.