Swedish carmaker Volvo Car is planning to invest in Sweden for the development of scalable product architecture(SPA)and Volvo engine architecture(VEA),which is claimed to be one of the country's largest ever industrial investments.
SPA,which is an architecture covering most of the carmaker's future models,comprises shared modules and scalable systems and parts that are produced in a flexible production system.
In addition to SPA,the carmaker will also develop a new four-cylinder fuel-efficient engine family called VEA,which will be manufactured in Sk?vde,while assembly of all drivelines,along with hybrid drivelines,will be incorporated in the Volvo's Torslanda facility in Gothenburg.
Volvo Car Group president and CEO Hakan Samuelsson said that almost half of the nearly$11bn investments through 2015 will be spent in Sweden for the development of infrastructure for the new vehicle architecture and engine family.
"SPA and VEA sharpen our cars'attractiveness in all areas-design,driving pleasure and quality down to the smallest detail,"Samuelsson said.
"And of course we are at the same time boosting our core values of safety and environmental care."
The investments are also aimed at expanding capacity and modernising production facilities in Sweden,including the construction of a new bodyshop in Torslanda,which is scheduled for completion in the second half of 2013.
Volvo will also invest in the bodyshop in Olofstrom,which is required to be upgraded for the new car models based on the new architecture,while the Skovde engine plant will also be modified for production of the new 4-cylinder engine family.
Volvo Car Group Research and Development senior vice president Peter Mertens said that the new SPA will make the firm as technologically independent,without any link whatsoever to its earlier owner.
"The new architecture covers about two-thirds of our total sales volume.With about 40 percent of all components shared by all car models irrespective of size,we will benefit from economies of scale,thus boosting our competitiveness,"Mertens said.
"With lower costs for development and parts designed to be shared by all our models,there will be more capacity left for focusing on individual details that are important to our customers."
Volvo is aiming to launch its XC90 as the first car model designed on the new architecture by the end of 2014.
