Brisbane truck maker Volvo targets expansion with electric vehicles

Truck manufacturer Volvo Group says it will expand its Brisbane factory over the next few years as it moves to produce a range of locally made electric heavy vehicles.

Truck manufacturer Volvo Group will expand its Brisbane factory over the next few years as it moves to produce a range of locally-made electric heavy vehicles.

Volvo Group Australia president Martin Merrick said the Swedish-based giant would be looking at new production lines at its Wacol factory and an expanded workforce to cater for electric-powered trucks. The factory currently employs 750 people.

Volvo last year marked 50 years of manufacturing trucks in Brisbane, with 70,000 vehicles having rolled out of Wacol since 1972.

“We should be producing electric vehicles (in Brisbane) within the next three years and while we won’t need an entirely new factory, there will be changes to production,” Mr Merrick said.

“Even though the internal combustion engine will be around for a while, we are looking at fossil free transport by 2040.”

Australian freight giant Team Global Express announced last month that it will buy 36 Volvo electric trucks, the largest order of electric trucks in Australia so far.

Volvo Group electric truck.

Volvo is the only global truck manufacturer with a full range of electric vehicles in production. The company says half of its global total sales of new trucks should be electric by 2030.

Mr Merrick conceded the company had suffered supply chain issues during Covid-19, with production halted briefly because of lack of components. The company has since expanded its warehouse facility to ensure it will be able to withstand future supply chain shocks.

Mr Merrick said Volvo had bounced back from pandemic shutdowns by posting record sales in 2022 with 6000 trucks being sold across its Volvo, Mack and UD brands in Australia.

Volvo says it has built market share by making trucks for Australian conditions, including bigger fuel tanks for long distances and more powerful air-conditioning.

“Australia has some of the toughest conditions for heavy vehicles in the world,” said Mr Merrick. “From the chassis and tyres to the fuel tanks and cooling systems everything is designed for Australian heat and the long distances. Volvo actually sends their trucks from overseas to be tested here.”

In 2018, Volvo announced a $25m upgrade of its Wacol factory as it expanded its share of the $3.5bn new truck market in Australia.

At the time Volvo global president Martin Lundstedt said that the refurbishment came after the company had lifted production of Volvo and Mack branded trucks by 40 per cent.

The company also opened its nearby $30m Australian headquarters to accommodate offices, a dealership and workshop in 2018.

Volvo Group Australia's new headquarters in Wacol.

Originally published as Brisbane truck maker Volvo targets expansion with electric vehicles