Volvo Group Announces $700 Million Investment in Nuevo León for Heavy Truck Manufacturing

Volvo Group has unveiled plans to invest $700 million in a new heavy truck manufacturing plant in Ciénega de Flores, Nuevo León. Expected to start operations in 2026, the facility will produce Volvo and Mack trucks for the U.S. and Canadian markets. This project will create 2,500 direct and 5,000 indirect jobs, boosting the local economy and reinforcing Nuevo León's position as a key hub for automotive manufacturing in Mexico.

Mexico as a Prime Nearshoring Destination for Automotive Manufacturing

Volvo Group’s significant investment marks an expansion of its production capabilities in North America. The new plant in Nuevo León will specialize in heavy-duty truck manufacturing for its Volvo and Mack brands, addressing growing demand in key export markets.

The plant will integrate advanced manufacturing technologies while contributing to regional economic growth. In addition to direct employment, it will generate opportunities for local suppliers and businesses, reinforcing Nuevo León’s role as a strategic location for the automotive industry.

Nuevo León has become a prime destination for global companies, thanks to its proximity to export markets, skilled workforce, and strong industrial infrastructure. Volvo’s choice to invest in the region reflects these advantages and highlights Mexico’s increasing prominence as a nearshoring destination for manufacturers.

​​State officials have expressed optimism about the project’s impact on the region’s industrial ecosystem. By focusing on production for North American markets, Volvo aligns with the goals of the United States-Mexico-Canada Agreement (USMCA) to enhance regional supply chain integration.

Volvo’s investment is also seen as a sign of resilience and growth in Mexico’s automotive sector, which continues to benefit from nearshoring trends and the demand for regional production capabilities.