Volvo hopes to produce in the US

Volvo currently makes cars only in Belgium and in Sweden, for all of their markets.  This puts them at a disadvantage when selling cars in the US, with the weak US dollar.   It is estimated that Volvo has lost over $1 billion in profits  over the last four years due to currency conversions. 

Volvo is hoping that with Ford, its parent company, selling Jaguar and Land Rover that Volvo will be able to get more money from Ford.  They also would like to use Fords plants in the US to build their vehicles for the US market.  They believe that this will help them be more profitable.  European competitors such as BMW and Mercedes both perform some production in the US for that market.