Volvo to close Uddevalla plant in 2013 image

Swedish carmaker Volvo Car Corporation, owned by China’s Zhejiang Geely Holding Group Co., said Monday it will stop production in its Uddevalla plant in 2013 as capacity is only utilized to 65%.

The automaker said Monday the plant’s workers will be offered jobs at other Volvo production units in Sweden, including in Goteborg, where the company is headquartered.

Volvo is making the C70 convertible at the plant, which is co-owned with Italian car design company Pininfarina SpA. The factory produced 10,000 cars last year and is now working at 65 percent of its capacity, Volvo said.

“The Uddevalla plant delivers cars with a very high quality. However, a car manufacturer of Volvo’s size can not, from a financial standpoint, justify a plant that manufactures one single model in the low volumes we have today.”

The fate of the C70 convertible’s replacement is still up in the air.

“We will now look into when a next generation Volvo convertible can be on the market and where it should be manufactured”, said Jacoby.

Source: Car and Driver