Volvo AB announced Thursday it will begin producing engines for both Mack and Volvo trucks out of its factory in Hagerstown, Md.

A four-year investment program will prepare the facility for delivering the next generation of diesel engine family for the Volvo Group's two North American truck brands.
The Hagerstown plant has been producing Mack engines since 1961 and recently delivered its millionth truck engine.
Volvo truck engines currently are produced at Volvo Powertrain plant in Sweden.
Volvo said it wants to reduce costs by sharing more engines and parts among its Volvo, Mack and Renault brands. The company's Powertrain division is also sharing engine technology with the heavy truck unit.
"The decision represents an important commitment to the North American truck market," said Leif Johansson, president and CEO of the Volvo Group. "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."
"We are very pleased to have reached this final decision after a very extensive analysis on the best way to deliver products of the highest quality and performance to the market," said Denis Leblond, senior vice president of Volvo Powertrain North American division. "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."
Located about 75 miles northwest of Washington, D.C., the Hagerstown facility has a total area under roof of about 1.5 million square feet. It includes all design functions in addition to manufacturing, has earned registration of its quality system to the ISO 9000:2000 international standard, and the ISO 14001 international environmental standard.
It employs more than 1,200 people.