Volvo to double Carolina auto plant

Even before the first vehicle rolls off the line at Volvo Cars’ new factory in South Carolina, the Swedish automaker has nearly doubled its investment to $1 billion and promised to build a second vehicle at the site.

Volvo says it will spend an additional $520 million and add nearly 2,000 more jobs to its plant under construction in Berkeley County just off Interstate 26 about 30 miles (50 kilometers) northwest of the port in Charleston.

Volvo announced two years ago it would build its brand new S60 sedan at the factory. Monday’s announcement doubled the number of jobs at the plant to nearly 4,000 and pushed Volvo’s investment in the state to more than $1 billion, South Carolina Gov. Henry McMaster said.

Starting in 2021 , the second line will make what Volvo Cars of North America President Lex Kerssemakers called the company’s flagship SUV, the revamped, hybrid XC90.

Volvo, which has been owned by Chinese automaker Geely since 2010, will also add about 300 jobs with sales offices, a training facility and research and development center at the Berkeley County site. Once its first U.S. plant is fully operational, Volvo hopes to make 150,000 vehicles per year.

South Carolina gave Volvo more than $200 million in incentives and agreed to build a new interchange on I-26 for the plant when it beat several other states to land the site in 2015. For its expansion, South Carolina officials plan to ask for $46 million in bonds for the company and further incentives are being negotiated, but aren’t being made public at this time, Commerce Department spokeswoman Adrienne Fairwell said.