Due to Volvo’s production boost in Europe, the company’s U.S. retailers will receive 5,000 to 6,000 more XC60 mid-sized crossovers in 2012 and even more in 2013. This decision was taken also because the dealers have complained that limited supply of the XC60s has affected Volvo’s sales.
In the fall of 2011 Volvo invested in Ghent factory, Belgium, where the model is produced, adding 200 workers to increase production, which hopefully will translate in 12,000 units a year for various markets beginning with this year. In 2011 three shifts per day were run at Ghent factory to produce the crossover, S60 sedan and other models, in order to meet demand.
“The XC60 is a product that’s been in the market for three years that has been over demand and undersupplied,” Maloney said on the sidelines of the Chicago Auto Show. “So this year, our supply goes up, which our dealers will welcome. It’s a hot product.”
The company also announced the construction of a new plant in China, which will produce more vehicles for the U.S. retailers, will supply the Chinese domestic market and let Ghent divert more production to the States. Production on the Chinese plant will begin in 2013.