Uddevalla plant closure in 2013 could kill Volvo C70

The closure of the Uddevalla production plant in Sweden could spell the end of the line for the Volvo C70, the only convertible in Volvo’s global line-up.
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Volvo Car Corporation President and CEO, Stefan Jacoby, confirmed the Pininfarina Sverige AB plant – the only factory in the world that builds the C70 convertible – would cease production in 2013.

"The low volumes in the Uddevalla plant do not justify continued production," Mr Jacoby said.“We will now look into when a next-generation Volvo convertible can be on the market and where it should be manufactured.”

He said the Uddevalla plant was responsible for delivering cars of a very high quality, but said regrettably a car manufacturer of Volvo's size could not justify a plant that manufactures one single model in such low volumes.

The Uddevalla plant has been operating at just 65 per cent of capacity this year.

Mr Jacoby confirmed the factory’s 600 employees would all be offered a different job with Volvo in Sweden following the closure in 2013.

"The employees in Uddevalla are very skilled car builders. Therefore we hope that as many as possible will choose to join Volvo Car Corporation.”

Volvo has been manufacturing the C70 since 1997. The current second-generation model was launched in 2006. So far this year, Volvo Australia has sold 148 C70s, down 22 per cent compared with the same nine-month period in 2010.