Swedish automaker AB Volvo has decided to make its Hagerstown, MD, facility, Volvo Powertrain, its "centre of excellence" for its North American operations with a four-year investment program to produce a new generation of diesel engines. According to press reports, the program will total $150 million.

The new family of engines will be installed in Volvo Group's two North American truck brands, Mack and Volvo. AB Volvo is among largest producers of heavy-duty diesel engines in the world.

The plant at Hagerstown has been manufacturing Mack engines since 1961, and recently marked the production of its 1 millionth unit. It offers all design functions, as well as manufacturing capability, and has been certified to the ISO 9000:2000 quality and ISO 14001 environmental standards. Presently, Volvo truck engines used in North American models are produced at Volvo Powertrain's Skovde, Sweden, plant.

Volvo Group president and CEO Leif Johansson said, "The decision represents an important commitment to the North American truck market. Backed by our considerable global resources and expertise, Hagerstown will ensure that demanding Mack and Volvo customers in this market can expect industry-leading quality and performance for years to come."

Denis Leblond, senior vice president of Volvo Powertrain's North American division, said the investment is based on extensive analysis of the best way for the group to deliver quality to the market. "This investment will further enhance our ability to leverage the high skill level and commitment of our U.S. workforce to serve the unique needs of each brand's customers with a full application excellence focus," according to Leblond.