South Carolina is an attractive place due to easy access to the sea. Volvo is known for their good training programs, so many Americans will be satisfied with the possibility of working for the Swedish car giant. Due to the stability of the company, Volvo`s shares are on the rise and many people are considering buying stocks in the company. CMC markets
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Volvo`s factory on US soil will be built near the region of Charleston, and the factory is expected to bring life to the place. The investment is about half a billion dollars, and no less than 2000 people are expected to be employed within the next few years. The company is expected to start slowly and then step by step to expand their business in North America. It is planned that about 100,000 cars are to be manufactured at first. If the business goes well, the plant will start producing more cars.
Why are places like South Carolina appealing to car manufacturers? The location is the key to this, because port proximity plays a huge role in the international trade. It is a great place where a big car manufacturer like Volvo can easily import their supplies from Europe, while USA can ship their home made cars to Europe and elsewhere in the world.
Volvo is the third biggest car manufacturer to base its business in South Carolina, and the state offers some great incentives and packages for everyone involved. One of the main reasons why the state attracts these car manufacturers is because they use local labor for their factories, and contribute towards US economy. South Carolina incentives also tremendously help in upgrading the local infrastructure of the car plant. Volvo is also attracted by the fact that they are given an agreement by which they will pay very little, if any, local taxes on the property.
Certain studies have shown that this kind of investment of big car manufacturers can boost the domestic economy by several billion dollars. One of Volvo's plans is also to boost their sales in the USA, as their cars are mostly sold and are more popular in other parts of the world, primarily in Europe. Their luxury SUVs are becoming increasingly popular in the USA, so they plan to double their orders in America. Volvo has been present in the US for over five decades, but currently have a couple of plants in China and Europe.
Examples like Volvo show that different states can significantly boost local and global economy as well, if they create a good environment for doing business. Quality local workforce, as well as lower taxes can also contribute towards better trade and the opening of more factories worldwide.