Volvo Group plans to boost North American truck production with a new heavy-duty truck manufacturing plant to be built in Mexico.

The new plant will provide additional capacity to support the growth plans of both Volvo Trucks and Mack Trucks in the U.S. and Canadian markets, and support Mack truck sales in Mexico and Latin America. The plant is expected to be operational in 2026.

The Mack Lehigh Valley Operations (LVO) plant in Pennsylvania and the Volvo New River Valley (NRV) plant in Virginia will continue to be the company’s main North American heavy truck production sites. The Group has invested more than US$73 million over the last five years in LVO expansion and upgrades, and is currently investing an additional $80 million to prepare for future production.

The NRV plant is completing a six-year, $400 million dollar expansion/upgrade to prepare for production of the new Volvo VNL model.

The location of the new Mexican plant has not been announced. Volvo Group says it will be approximately 150,000sqm in size, and will focus on production of heavy-duty conventional vehicles for the Volvo and Mack brands. It will be a complete conventional vehicle assembly facility including cab body-in-white production and paint.

Volvo says adding production in Mexico will deliver logistical efficiencies for supporting sales to the southwestern/western regions of the U.S., and to Mexico and Latin America. It also provides a mature supply and production ecosystem that will complement the U.S. system and increase the resilience and flexibility of the Group’s North American industrial footprint.