Volvo CEO says plan for Mexico truck factory on track despite US tariff threat

Sweden's Volvo Group is proceeding with its planned $700-million heavy-truck factory in Monterrey, Mexico, CEO Martin Lundstedt told Reuters on Wednesday, even as President-elect Donald Trump threatens to impose U.S. tariffs on imports of vehicles and other goods. The maker of Volvo and Mack semi-trucks has targeted growth in North America, which accounts for about 30% of company revenue, as a strategic priority and expects the plant to start operations in 2026. It expects the factory to deliver vehicles to the United States, Mexico and Canada, as well as to Latin America.