Volvo plans to cease production at the Uddevalla plant, Sweden, in 2013. The plant is responsible for the Volvo C70 production. If the company doesn't find another home for the convertible, the C70 may end up as another discontinued Volvo.
The Uddevalla Plant is a joint venture between the Swedish automaker and Italian car design company Pininfarina S.p.A. The joint production of vehicles began in 2005 but the companies agreed to discontinue the JV the next year. At the moment, Pininfarina S.p.A. owns 60% of the JV and 40% belong to Volvo. In 2013, Volvo plans to take full control of the Pininfarina factory, and turn off the lights at the plant the same 2013. Stephan Jacoby, Volvo CEO, explains that while the facility produces high-quality vehicles, its output level is to low to stay profitable. Under current configuration, the plant is producing 10,000 vehicles per year, which is 65% of its production capacity. Volvo typically requires at least 80% utilization for a plant to be profitable. The representatives of Volvo Cars of North America report that the future of the C70 is uncertain for now, and its possible that the production may be transferred to the Vovlo's facility in Belgium. As for Pininfarina, after it closes down the production activities, the company will focus on the design and engineering operations.