Volvo to Cease C70 Production at Uddevalla Plant

Volvo Car says it will cease production at its joint-venture plant with Pininfarina Sverige in Uddevalla, Sweden, in 2013.

The plant, which builds the Volvo C70 convertible, employs 600 workers, who will be offered positions at other Volvo facilities following the factory’s closure.

The auto maker has not announced where C70 production will be transferred.

Volvo CEO Stephan Jacoby says the plant produces high-quality vehicles, but its continued operation cannot be justified at current output levels.

“A car manufacturer of Volvo’s size cannot, from a financial standpoint, justify a plant that manufactures one single model in the low volumes we have today,” Jacoby says in a statement.

“The production capacity in Uddevalla is currently only utilized to 65%.”

Volvo has been building cars at the plant with Pininfarina since 2005. In March, the two companies agreed to terminate the JV, with sole possession reverting to Volvo.