Volvo Cars is planning to invest $500m to build a new manufacturing facility in the US, as a part of the company's long-term plan for the market.
With the new plant, the carmaker aims to exceed its volume targets in the US, with plans to sell 100,000 cars per year.
The new plant will also help the company introduce build-to-order in the country and bring the company's global manufacturing footprint to the US.
The Swedish automaker has not given out details of the location, mentioning that it has prepared a short list of potential locations and will announce the details later.
According to Volvo, the new plant will create new jobs, and provide security for its employees and their families.
Volvo highlighted that it has now become a global car manufacturer with footprint on all three key continents including two facilities in Europe, two in China and the upcoming plant, which will be constructed in the US.
Volvo Cars Chief Executive Hkan Samuelsson said: "Volvo Cars cannot claim to be a true global car maker without an industrial presence in the US. Today, we became that.
"The US is an absolutely crucial part of our global transformation and today's announcement makes it perfectly clear that Volvo is in the US to stay."
The new plant is part of companys transformation started in 2010 which looks to expand global footprint, completely renew the product range over the next four years, introduce a new modular vehicle technology, develop new safety technologies.
