LOUISVILLE, Ky. (WDRB) -- Volvo could be making plans to compete head-to-head against rivals BMW and Mercedes -- and that competition could start right here in Kentucky.

The Swedish Car company is looking at Kentucky, North Carolina, and South Carolina for a new manufacturing plant.

According to Financial Times, a British Newspaper, Volvo has appointed a new U.S. leader to increase sales here. The first step to accomplish that goal is deciding where to locate a new plant. The deciding factor on location could revolve around incentives offered by the three states.

Kentucky has two sites that are able to support a Volvo plant: one south of Louisville in Hardin County, and the other in Hopkinsville in Christian County.

Greg Higdon, President and CEO of The Kentucky Association of Manufacturers, says if Volvo locates in the bluegrass state, it would only add to Kentucky's growing automotive industry.

“It would be huge in more ways than one, obviously. The bottom line is manufacturing drives the GDP in Kentucky as a whole. The automotive industry is the biggest component of that,” Hidgon told WDRB News. 

Kentucky Gov. Steve Beshear was very quiet on the issue Friday afternoon, saying Kentucky has discussions going on with a number of auto companies, but can not discuss any particulars.

We also reached out to Volvo representatives. They tell us they are unable to comment on the issue.

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