Swedish auto maker Volvo said it will invest $150 million in Mexico to buy the country's second-biggest bus maker and start assembling cars there.
Volvo, the world's second-largest maker of buses, will spend $70 million to buy Mexicana de Autobuses, (known as MASA), which makes buses near Mexico City, a move that would give it access to the North American Free Trade Agreement region. The remaining $80 million would be spent over the next two years.
MASA is owned by members of its board, Mexican bus maker Dina and Brazilian bus body manufacturer Neelsen.
Volvo said it also plans to assemble 1,000 cars annually, starting next year, destined for the Mexican market only.
It's also studying the possibility of making heavy construction equipment and truck cabs in Mexico.