Volvo Might Look for a New Home

08/20/96

The Associated Press has reported that Volvo's chairman said the Swedish carmaker could move its headquarters away from Sweden. Volvo only sells about 10 percent of its total production in its home country.

In a TV interview last week, Soren Gyl said "Sweden is situated a little oddly when you look at the entire world market. We have the biggest exports of all the carmakers in relation to what we sell in the home market.

"Volvo's headquarters has always been in Sweden, but looking at the future the question is relevant from the standpoint that we must watch what happens outside Sweden," Gyl continued.

Volvo's headquarters is in Goteborg, Sweden's second-largest city, about 300 miles southwest of Stockholm. Volvo currently has production operations in countries outside of Sweden and is expanding in Asia. Volvo's foreign production includes the carmaking plants in Halifax and Nova Scotia, and a joint venture--Volvo GM Heavy Truck Corporation (Volvo owns 87% of the venture)--with plants in the U.S.

Paul Dever -- The Auto Channel