Volvo's Ghent Plant May Assemble GEELY-Affiliated Brands, Receiving €119M in Support

Volvo is planning to expand production capacity at its Ghent plant in Belgium. Subject to receiving up to €119 million (approx. $136 million) in financial support from both the Belgian federal government and the Flemish regional government, the facility may begin contract assembly of vehicles for Chinese sister brands.

According to an official statement released by Volvo on July 15, the company has signed a memorandum of understanding with both levels of Belgian government to apply for aid totaling up to €119 million. The funds will support strategic investments aimed at reinforcing the Ghent plant's role as a key global manufacturing hub for Volvo.

In addition to ongoing production of current models — including the all-electric SUV EX30, EX30 Cross Country, and the gasoline/hybrid platform XC40 and V60 wagons — Volvo explicitly stated that the new investment could enable the Ghent plant to offer contract assembly services for other group brands. This move aims to improve overall plant capacity utilization.

Volvo CEO Håkan Samuelsson previously told Automotive News Europe that the company has proactively offered access to its European plants — including Ghent — to China-based sister brands within the group: GEELY Auto, Zeekr, and LYNK&CO. He noted that leveraging government subsidies to reduce labor and energy costs would make the Ghent plant a cost-effective production base for these brands entering the European market.

Against the backdrop of increasingly stringent EU scrutiny of foreign direct investment in manufacturing, localizing assembly at an existing, mature facility — rather than building a greenfield plant — can significantly shorten time-to-market and reduce upfront capital expenditure. Samuelsson emphasized that this approach provides a pragmatic launchpad for multi-brand expansion across Europe under the GEELY holding’s umbrella.

It should be noted that Volvo, GEELY, Zeekr, and LYNK&CO are all subsidiaries of Zhejiang GEELY Holding Group, ultimately controlled by Chinese entrepreneur Li Shufu. No specific models, launch timelines, or capacity plans have been announced yet; details remain in early-stage discussions.