People look on during the reveal event of the Volvo EX30 electric SUV vehicle in Milan, Italy June 7, 2023. REUTERS
MEXICO CITY, (Reuters) – Sweden’s AB Volvo (VOLVb.ST), will increase its investment in the truck factory it is building in the northern Mexican state of Nuevo Leon to $1 billion, Mexico’s Economy Minister Marcelo Ebrard said on Thursday.
Volvo announced in August that it had chosen a site on the outskirts of the industrial hub Monterrey in northern Mexico as the site for its new North American heavy-duty truck factory, putting construction costs at the time at $700 million.
“Good news!” Ebrard wrote in a post on X announcing the higher investment amount, saying he had been informed of the decision from Volvo’s headquarters in Sweden.
Production at the factory is slated to begin in 2026.
Volvo did not immediately reply to a request outside of business hours.
Reporting by Brendan O’Boyle; Editing by Sarah Morland
