Volvo announces new $30 million expansion in Queensland

Volvo’s global CEO has backed manufacturing in Australia, turning the first sod on a new $30 million headquarters and dealership in Wacol, Queensland.

Volvo made over 2,000 trucks last year and has a 26.2 per cent of the local market. It has been operating at Wacol since 1972.

Martin Lunstedt, the company’s global president and CEO, said that the integrated nature of the company in Australia was important to its success.

“We see the benefits (of doing business in Australia), it is not about a must have, it is about what we want to have in order to serve our customers better,” Lundstedt told The Australian.

“It’s not only the manufacturing, it’s also the engineering footprint. That engineering footprint is also important to have the right solutions for the Australian and New Zealand market.”

The Australian Industry Group’s national manufacturing director Mark Goodsell said the investment was good news.

"It's great to see a prestigious and successful international company supporting local manufacturing and backing the skills and commitment of Australian managers and workers," he told Big Rigs.

Despite the downturn in local car making – with Ford to end their Australian manufacturing operations this year, followed by Holden and Toyota next year – truck manufacturing continues to perform strongly.