Volvo Cars has commenced production of the new V90 premium estate at its Swedish manufacturing facility in Torslanda.
The production of the all new V90 is taking place after four months since its official unveiling.
The first customer-bound V90 rolled off the production line just weeks after the initial S90 premium sedan was built.
All new models in the top-of-the-line 90 series are now being manufactured in Sweden.
Volvo's plant in Torslanda doubled its staff over the past two years to about 6,300 employees.
Volvo Car group president and chief executive Hkan Samuelsson said: "Taking the new V90 into production is an important milestone for Volvo.
"We have invested heavily in preparing the Torslanda plant for building SPA vehicles and it is encouraging to see the positive response to the new 90 cars. We are going from strength to strength, as our transformation plan continues to bear fruit."
The three new 90 series cars are part of a $11bn transformation program launched by Volvo in 2010.
The company plans to revamp its entire car range in the next three years. Volvo said the introduction of the new cars generated significant sales and profits.
Last year, Volvo Cars sold more than 500,000 cars with annual operating profit trebled to SEK 6.6bn.
In the first five months of this year, Volvo Cars reported a 10.4% increase in worldwide sales, with growth in all major regions.
