Despite being acknowledged by Americans as the safest car out there, it looks like sales have gone down lately for Volvo. In order to mend this situation, the company is opening a factory in South Carolina, that is expected to cost around $500 million.
Opening a giant plant in Berkley County will not only be a smart move for the car company, who is looking to boost its presence in the US, but also for South Carolina.
All time lows have been registered in the Berkeley, Dorchester and Charleston county unemployment rates this year in March. The numbers were actually worse than those registered state-wise, putting these three counties in quite the predicament.
This is the main reason behind Berkley county having courted Volvo for a sensible amount of time before they decided to open up shop there. And it was not only time that was put in on the matter.
South Carolina and Berkley County are expected to offer a $204 million incentive to Volvo, that is mainly planned for the improvement of the Camp Hall Commerce Park area, located close to Ridgeville. In addition to this, local taxes are to be lowered for the car company.
Even if $204 million sounds like a large amount of money, the South Carolina counties would stand to gain thousands of job openings, that they need urgently. To be exact, the Volvo plant is set to bring 2,000 employees in the beginning, figure that would rise up to 4,000 by 2030.
As for the financial figures, the car company is estimated to bring around $4,8 billion annually, after the initial investment of $500 million. It is with these numbers in mind that Senator Paul Campbell called the Volvo plant “an investment in the future.”
It is not yet known to the public what Volvo’s intentions are with the South Carolina plant. The model which they plan to put together in Berkley is unknown at the moment. However, no matter which Volvo will be assembled locally, the company’s sales in the US are bound to go up.
This savior reputation is beneficial to both Berkley and Volvo, and it all constitutes a marketing strategy that is sure to win the hearts of Americans and get them to open their wallets. America loves heroes, it has always been so. And if this plan makes it through, then Volvo will definitely be depicted as the savior of Berkley County.
And when you add this to Volvo having this reputation of being the safest car out there, you might as well pin a cape on it and find it a catchphrase, because what you have is a full size superhero.
It remains to be seen if the transaction will be finalized and if Sweden-based car company Volvo will come to the rescue of South Carolina’s reputation and join in on the millions. The plant in Berkley County would be the first factory owned by the company in the US and it would have all the chances of generating promising numbers for both parties.
Image Source: askmonroe
Latest posts by Nathan Fortin (see all)
- The End of Life Option Act Already Used by 111 People - Jun 28, 2017
- Senate Decided to Kill Rule that Promotes Retirement Plans - Apr 1, 2017
- BlackRock Is Turning to Robots for Improved Stocks - Mar 30, 2017