Volvo Cars plan to discontinue production of the Volvo C70 convertible at the Pininfarina Sverige AB plant of Uddevalla, Sweden, by 2013. Established as a joint venture between Italian design house Pininfarina and the Swedish Automaker since 2005, the plant is responsible of building only the C70 model and employs 600 workers for the task.
Volvo CEO Stephan Jacoby explained that while the plant produces high quality vehicles, it isn’t cost effective at current levels of production. “A Car manufacturer of Volvo’s size cannot, from a financial standpoint, justify a plant that manufactures one single model in the low volumes we have today… The production capacity in Uddevalla is only utilized to 65%.”
According to Volvo, the 600 workers of the Uddevalla plant will be moved to other facilities after its closure. However, there has been no word on the C70′s fate. Once the Uddevalla plant is closed, Pininfarina and Volvo will end their joint venture, shifting plant ownership solely to Volvo.