We know the Volvo Group is flying the flag for Aussie truck manufacturing in Australia and we respect them immensely for that.

But on the global stage, the Swedish brand is struggling to keep up with demand.

It’s been a challenge for truck manufacturers post-COVID to keep up with demand as supply chains continue to ramp up and road transport becomes ever more popular.

Now a big move has been made by Volvo across the Pacific Ocean with the group announcing it would commence building a brand new heavy-duty truck production plant in Mexico.

The new 1.7 million square foot facility is expected to come online in 2026 and will help supplement demand for Volvo and Mack trucks in the U.S. and Canada.

It will also support Mack truck sales in Mexico and Latin America.

Volvo Group told us the new plant in Mexico will be a complete conventional vehicle assembly facility including cab body-in-white production and paint.

It will also provide a mature supply and production ecosystem that will complement the U.S. system and increase the resilience and flexibility of the Group’s North American industrial footprint, the Volvo Group said.

A specific location for the plant in Mexico has yet to be announced.

Meantime, Volvo HQ in Stockholm today reported a smaller first-quarter profit drop than expected and a fall back to more normal demand levels in many markets.

After high levels and demand in 2023, the sector was braced for a tough 2024 and Volvo forecast fewer trucks would be registered this year, with a particular downturn in Europe.

“In Europe, order backlogs and lead times have normalised. Through the quarter we gradually reduced production capacity in Europe and anticipate to be in balance during Q2,” – CEO Martin Lundstedt said on Wednesday.

“Many fleets continue their replacements, while retail customers are more in a wait-and-see mode.”