Despite President Donald Trump’s 25% auto tariffs on imported cars, including those from Mexico and Canada, Sweden’s Volvo has announced that its investment in Aztec lands will be higher than expected.
This was announced by the Mexican Secretary of Economy, Marcelo Ebrard, who explained on his X account that the announcement is good news.
“I have been informed by Volvo’s global headquarters in Sweden that they have decided to increase the planned investment in Ciénaga de Flores, Nuevo León, from USD 700 million to USD 1 billion. The plant that will make cargo trucks will start operating in 2026. Good news!!”
It was in April 2024 that the Volvo Group announced the construction of its new heavy truck manufacturing plant in Monterrey, Mexico. The plant, it said, will complement production in the United States and provide additional capacity to support the growth plans of both Volvo Trucks and Mack Trucks in the US and Canadian markets, as well as sales in Mexico and Latin America.
At the time, the automotive group explained that Monterrey offers significant logistical efficiencies to support sales in the southwestern and western regions of the United States and in Mexico and Latin America.
“Due to its proximity to the US border and its well-developed infrastructure, the Group considers Monterrey to be an ideal location to build a mature supply and production ecosystem,” he said.
He explained that the Monterrey plant represented an investment of approximately USD 700 million and will focus on the production of conventional heavy vehicles for the Volvo and Mack brands.
He emphasized that it will be a complete assembly plant for conventional vehicles, including the production and painting of cabins.
Samuel García, Governor of Nuevo León, had already made the announcement on his X account.
“The message is clear: those who wish to compete in the North American market without paying tariffs must produce in Nuevo León,” he wrote.
García Sepúlveda explained that “Nuevo León is the big winner of Donald Trump’s tariff policy,” and anticipated that a second wave of Nearshoring is coming, because with the US president’s generalized tariffs, Sweden, where Volvo is located, will pay 36% tariffs, while Nuevo León, taking advantage of the USMCA measures, will be “more competitive.”
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