en.Wedoany.com Reported - The parent company of Volvo Trucks North America (VTNA) and Mack Trucks, both under the Volvo Group, revealed on June 10 that the first test vehicles have been produced at the group's manufacturing plant in Monterrey, Mexico.
This milestone was updated during the Volvo Group's 2026 Capital Markets Day, featuring presentations by CEO Martin Lundstedt, Volvo Trucks President Roger Alm, and Stephen Roy, head of Volvo Group's North American truck operations. The Monterrey plant is the Volvo Group's first truck manufacturing facility in Mexico, producing trucks for both VTNA and Mack to supplement capacity at existing U.S. plants.
The Volvo Group announced plans in April 2024 to build a 1.7 million-square-foot factory, and in August of the same year stated that the $700 million facility would be located in Monterrey. As the last major North American truck manufacturer to begin full vehicle production in Mexico, the company had previously manufactured buses in the country. In March, VTNA President Peter Voorhoeve told Transport Topics that the Monterrey production line would start in July, with initial output expected to be "very low."
Trucks produced at the Monterrey plant for VTNA will be exported to the United States and Canada, while those for Mack will supply markets in Mexico, Latin America, as well as the U.S. and Canada. VTNA currently operates two manufacturing plants in the U.S.: the New River Valley plant and a drivetrain facility in Hagerstown, Maryland (shared with Mack). Mack's primary U.S. production facility is the Lehigh Valley Operations plant in Macungie, Pennsylvania.
The Volvo Group expects the Monterrey plant to provide flexibility to meet demand from various segments during peak freight market periods, which existing capacity cannot achieve. According to presentation materials, the expansion will also support plans to double Mack's export business in Central America, South America, and the Caribbean. The Volvo Group added that Mack will focus on three key markets: Mexico, Chile, and Colombia.
"These are very good, mature markets with strong fleets that are heavily investing in new and sustainable technologies," Roy told analysts and investors during the 2026 Capital Markets Day. Roy, who will be succeeded by Wilson Lirmann in August, added: "This is an area we are very excited to return to. We had a very strong presence in export markets in the past. We have selected about 18 countries as priorities."
Additionally, output from the Monterrey plant will support the Volvo Group's plan to capture a 25% share of the North American heavy-duty truck market by 2030, a target the parent company revealed during its previous Capital Markets Day in Dublin in November 2024. VTNA is expected to contribute 15% of that share, with Mack contributing 10%. According to Omdia Automotive data, VTNA held a 9.1% share of U.S. Class 8 truck retail sales in 2025, while Mack held an 8.7% share. As the freight market outlook improves and truck sales recover, competitors in the North American Class 8 truck market are already ramping up production.
According to data from Mexico's National Institute of Statistics and Geography (INEGI), Daimler Truck North America's Freightliner division, International Motors, and Paccar's Kenworth division produced a combined 13,878 trucks in Mexico in May, accounting for 95.4% of all commercial vehicle production in the country that month. These three truck manufacturers produced a total of 11,755 vehicles at their Mexican plants in April. According to preliminary data from ACT Research, North American Class 8 truck orders rose 103% year-over-year in May to 26,500 units, following a 201% surge in April.
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