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Volvo Plant in U.S. No Time Soon

February 1, 1996

STOCKHOLM, Sweden (AP) _ Swedish auto-maker AB Volvo confirmed Thursday it has talked with Japan’s Mitsubishi Corp. about building cars together in the United States, but emphasized nothing will happen soon.

Volvo just wants to keep ``updated on the market and production in the U.S., but production in the U.S. is not currently on the management’s agenda,″ Volvo spokesman Ingmar Hesslefors said.

Volvo officials last year said the company was looking at the possibility of building vehicles, perhaps a new line of cars or trucks, in the United States.

But the company spokesman reiterated that the prospect ``is no hot issue.″ Volvo has refused to disclose which sites it had been examining.

Volvo and Mitsubishi recently teamed up in a joint venture in the Netherlands to build compact cars.

European and Japanese carmakers have been attracted to the U.S. by the relatively weak value of the dollar, cheaper labor costs and the sales appeal of cars that are technically American made.

Update hourly