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Area Development - Site Selection, Facility Planning and Workforce Development

Volvo Group Expands Hagerstown, Maryland, Plant

06/14/2021
Volvo Group plans a $33 million expansion of its powertrain research and development site, constructing a new, state-of-the-art Vehicle Propulsion Lab in Hagerstown, Louisiana Maryland. The project is expected to create 10 new jobs.

Volvo's VPL will be the first facility in North America to allow comprehensive testing of current and future products for Volvo Trucks, Mack Trucks, Prevost and Volvo Bus to meet evolving government regulations and ensure high performance on the diverse North American roadways. The company also expects the new lab to help drive ongoing product-quality improvements and speed-to-market capabilities due to the strategic migration from on-road testing to controlled, lab-environment testing.

"The Hagerstown powertrain technology site plays a significant role in the Volvo Group's efforts to offer advanced transportation solutions that meet customers' needs today and down the road," said Lars Stenqvist, chief technology officer of the Volvo Group. "The all-new VPL, slated to open in the second quarter of 2023, will enable us the ability to more quickly develop and test battery-electric and hydrogen-based fuel cell solutions, as well as internal combustion engines, which will be powered by fossil-free fuels in the future, for our Class 8 trucks and coach buses."

At final construction, the VPL will be more than 35,000 square feet, two-stories high and connected to the existing engine development lab on the Hagerstown campus. It's been 15 years since the current lab went into operation, which involved a $40 million investment at the time. Since then, the company has spent an additional $12 million upgrading the test cells, a portion of which was used to enable the creation of electricity regeneration when operating the dyno tests.

"Our engineers currently rely on long-distance travel for extreme-weather testing or tap various third-party labs that specialize in specific types of testing," said Audley Brown, vice president of powertrain engineering for Volvo Group North America. "The VPL will be one of the few places in operation that offers vehicle emissions and on-board diagnostics requirements at all expected operating conditions for trucks, buses and powertrains."

The Volvo Group employs more than 250 people at the current site. The company's Hagerstown campus is also home to the Volvo Group's powertrain manufacturing facility, producing engines, transmissions and axles for Mack Trucks, Volvo Trucks, Prevost coaches and Volvo Buses sold in North America.

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