The Volvo Group has selected Monterrey, Mexico, as the site for its new heavy-duty truck manufacturing plant, a key move aimed at expanding production capacity for both Volvo Trucks and Mack Trucks. Announced on April 11, this facility will complement the Group’s existing U.S. operations, providing additional capacity to support the growing demand in the U.S. and Canadian markets, as well as for Mack truck sales in Mexico and Latin America. The plant is slated to be operational by 2026.
Monterrey’s strategic location offers significant logistical advantages for serving the southwestern and western regions of the U.S., as well as Mexico and Latin America. Its proximity to the U.S. border and well-developed infrastructure make it an ideal location for establishing a robust supply and production ecosystem.
The new plant in Monterrey represents a substantial investment of approximately USD 700 million (SEK 7.2 billion). It will focus on manufacturing heavy-duty conventional vehicles for both the Volvo and Mack brands, with a complete assembly process that includes cab body-in-white production and painting.
This expansion is part of the Volvo Group’s broader strategy to strengthen its industrial footprint and supply chain in North America. In addition to the Monterrey plant, the Group is acquiring Commercial Vehicle Group’s (CVG) production plant in North Carolina for around USD 40 million (SEK 410 million). This facility produces cabs for Mack’s heavy- and medium-duty trucks and will further enhance the company’s manufacturing capabilities in the region. The acquisition is expected to close in the second half of the year.
