Volvo Cars and the Belgian federal government have signed a memorandum of understanding to ensure long-term activity at Volvo’s Ghent plant. The agreement supports Volvo’s plan to build cars for other brands, mainly those within the Geely group, helping to secure jobs and investment in the factory.
Belgium Invests €119 Million to Support Ghent Factory
The Belgian government will provide up to €119 million in funding aimed at industrial, ecological, and innovation initiatives. This support will help Volvo reinvest in its Ghent plant, which currently produces models like the EX30 electric SUV and the XC40 Recharge plug-in hybrid.
Volvo to Produce Other Geely Group Models
According to the memorandum, Volvo plans to manufacture vehicles for other brands under the Geely umbrella. This includes models from growing brands such as Lynk & Co, Polestar, and Zeekr, as well as Smart, which is a joint venture between Geely and Mercedes.
- Volvo’s Ghent plant now builds the EX30 and XC40 Recharge.
- Possible future production of Geely and related brand models could start in Ghent.
- Smart models are currently made in China, but European production may increase.
Why This Matters
This deal strengthens Volvo’s manufacturing base in Europe and secures jobs in Belgium. It also reflects Geely’s broader strategy to expand its electric vehicle footprint across Europe. By building cars for multiple brands in Ghent, Volvo aims to keep the plant competitive and active amid changes in the automotive industry.
Source: motor.es