Demand for the luxury convertible has been waning, and Bloomberg reports that Volvo produced less than 10,000 units at its Uddevalla, Sweden, plant last year. The plant was started as a joint venture between Volvo and Italian designer Pininfarina in 2003, but Volvo signed an agreement in March of this year to buy out Pininfarina in 2013.
That deal is still valid, but Volvo has now decided to shutter the Uddevalla plant in 2013. It’s unlikely sales of the C70 will increase, and running a plant that builds just one model at volumes that struggle to reach 65 percent of capacity isn’t cost effective. Volvo hasn’t officially confirmed the death of the C70, but the expense of transferring production to another Volvo facility will be difficult to justify.
Volvo employs some 600 workers at the Uddevalla facility, and all will be offered jobs at other Volvo plants, including the main production facility in Gothenburg, Sweden.