Volvo sales in June DOWN 44% in Europe as new Volvo EV Plant announced

Volvo sold 49,904 cars in June 2022, down by 26.9 per cent on 2021, as a new Volvo plant to build EVs in Slovakia is announced.

It’s no secret that car makers are struggling to build cars thanks to parts issues caused by Covid and its ongoing impact, and it looks like Volvo, with its strong China presence, is having a bit of a tough time.

Volvo’s sales in June were down by 26.9 per cent on the same month in 2021 – and in Europe, they were down by a whopping 44.1 per cent – as Covid-related lockdowns in China caused a shortage of components, affecting EVs and PHEVs in particular. However, despite that, Volvo says they actually built more cars in June than in any other month this year.

But as Volvo moves on to EVs, it says that every third Volvo sold in the first half of this year was either a BEV or PHEV so, despite the current situation, it’s making plans to build even more EVs.

The plan to increase capacity will see a new Volvo Plant – the first since the mid-1960s – in Slovakia, just 62 miles from the Ukraine border, building Volvo’s new EVs.

Volvo plans to invest £1 billion in the new plant close to Kosice, in the eastern part of Slovakia, adding to the already large car manufacturing operations by other car makers in the country, which delivers a well-established supply chain.

Volvo’s Jim Rowan said:

We have a clear focus on becoming a pure electric mobility brand by 2030, which is in line with our purpose. Expansion in Europe, our largest sales region, is crucial to our shift to electrification and continued growth. I am very pleased to expand our Volvo Cars production footprint into Slovakia and look forward to welcoming new colleagues and partners on the journey ahead.

The plan is to start on the new plant in 2023, install production lines in 2024 and start production in 2026 of up to 250,000 EVs annually.

Let’s hope that by 2026 supply-chain issues are fixed.