Volvo Shutting the Doors on Convertible Facility in 2013
Volvo Car Corp. will be shutting the doors of its Uddevalia, Sweden facility in 2013, citing a deficient demand for the C70 hardtop convertible. The facility, which is co-owned by Italian auto maker Pininfarina S.p.A, rolled out 10,000 cars in 2010 but is currently working at 65-percent capacity. According to Volvo, a facility needs to be operating at 80 percent capacity to turn a profit. “The low volumes in the Uddevalla plant do not justify continued production,” Chief Executive Officer Stefan Jacoby said in a statement on Volvo's website. ”A car manufacturer of Volvo’s size cannot, from a financial standpoint, justify a plant that manufactures one single model in the low volumes we have today.” In March of this year Volvo agreed to buy out Pininfarina, ending its partnership with the Italian company. This paves the way for the facility to close its doors in 2013. The Swedish based auto maker intends on more than doubling annual sales to 800,000 vehicles in 2020 with certain markets getting more attention than others. Volvo anticipates investing more than $11 billion over the next five years in markets including China. There are also plans to open two new facilities in the world's (newly-crowned) biggest auto market. The C70 began life in 1997 as a coupe and then morphed into a soft top convertible in 2002. The second-generation C70 was unveiled at the Frankfurt Motor Show in 2005 and hit the market as a 2006 model as a retractable hardtop convertible soon after. The three-piece roof, which can be raised or lowered in 30 seconds, replaced both the convertible and coupe, with the latter phased out of Volvo's line-up in 2003. Source: Automotive News, Bloomberg
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