The Volvo Group will build its new Mexican heavy-duty truck manufacturing plant in Monterrey. The new plant will supplement the group's US production and provide additional capacity to support the growth plans of both Volvo Trucks and Mack Trucks in the US and Canadian markets – as well as Mack truck sales in Mexico and Latin America. 

The plant is expected to be operational in 2026.

Volvo said Monterrey provides significant logistical efficiencies for supporting sales to the southwestern and western regions of the US, and to Mexico and Latin America.  With its proximity to the US border and well-developed infrastructure, the company said it considers Monterrey an ideal location for building a mature supply and production ecosystem.

Growth in North America is a strategic priority for the Volvo Group, and this investment is part of a comprehensive effort to increase the strength and flexibility of the group's industrial footprint and supply chain in the region.  This includes an agreement to acquire Commercial Vehicle Group's (CVG) production plant in North Carolina, which produces cabs for Mack's heavy- and medium-duty trucks, for approximately US$40m (SEK410m). That deal is expected to close in the second half of this year.    

The Monterrey plant represents an investment of approximately US$700m (SEK7.2bn) and will focus on production of heavy-duty conventional vehicles for the Volvo and Mack brands.  Volvo says it will be a complete conventional vehicle assembly facility including cab body-in-white production and paint.