The Swedish heavy vehicle manufacturer Volvo has begun construction of its new plant to manufacture heavy trucks in the northern city of Ciénega de Flores, in the Mexican state of Nuevo León, to begin production in 2026. Although its original investment of $700 million could increase 42 percent to $1.0 billion, according to press reports.
“It is an investment of $700 million and it can grow to $1.0 billion,” said the head of the Ministry of Economy of Nuevo León, Iván Rivas, in an interview with the Mexican newspaper ABC Noticias.
The official explained that Volvo will build its plant on a 120-hectare plot of land, the covered plant will be 20 hectares. “They are just arriving and they are already thinking about expansion. They said 'We want to continue expanding,'" Rivas explained to the newspaper.
Volvo will produce heavy vehicles of the Volvo Trucks and Mack Trucks brands for the United States and Canada market, and the Mack brand for Mexico and Latin America from February 2026. Meanwhile, the company has started negotiations with auto parts producers in Mexico.
Data from the International Organization of Motor Vehicle Manufacturers (OICA), viewed by SteelOrbis, shows that in 2023 Mexico was the fifth largest producer of heavy trucks in the world with a global share of 6 percent, surpassed by the United States (9 percent), India (9 percent), Japan (9 percent), and Mexico (9 percent). (13 percent) and China (44 percent).