Electrive — 2026-08-18
Automotive Industry
According to Handelsblatt, Volvo has reportedly been considering opening its European production network to additional brands from its Chinese parent company, Geely, for several months now. The plans have now taken a more concrete shape: An Conghui, the new Chairman of Geely Automobile, announced during a conference on the group’s half-year results that Volvo’s European plants will form a key pillar of the group’s localisation strategy. Higher-priced vehicles from Geely’s portfolio will be manufactured at these plants, with production set to begin in 2028.
It remains unclear which brands and models have been selected for this initiative. Geely Automobile’s portfolio includes the core Geely brand as well as Zeekr and Lynk & Co. The latter two, in particular, are positioned as premium brands and could be well-suited for the production of higher-priced models, though this has not yet been confirmed.
These developments coincide with a leadership change at Geely Automobile. An Conghui will take over as Chairman from Geely founder Li Shufu on 18 August. Li Shufu is stepping back from the leadership of the listed automotive division but will remain Chairman of the overarching Zhejiang Geely Holding. An Conghui was previously responsible for Zeekr, among other roles. As part of the leadership transition, Geely also announced plans to strengthen collaboration within the group. Volvo currently operates vehicle plants in Gothenburg, Sweden, and Ghent, Belgium. Additionally, a new plant in Košice, Slovakia, is set to begin series production in early 2027. It is not yet clear which of these sites will produce Geely models from 2028.
Ghent, in particular, was already mentioned in July in connection with potential contract manufacturing. Volvo Cars has signed a letter of intent with the Belgian federal government and the Flemish regional government regarding the future of the plant. The agreement includes a support package of up to €119 million for investments and the long-term securing of the site, explicitly allowing for the future production of vehicles from other brands under contract manufacturing.
In Spring, Volvo CEO Hakan Samuelsson previously indicated that Volvo could support Geely’s expansion in Europe using its production capacities. For Volvo, such a collaboration would simultaneously enable higher utilisation of its own plants, which is particularly relevant given the company’s recent business performance: in the second quarter of 2026, the Swedish company’s revenue fell by 17 per cent, while its operating result halved compared to the same period the previous year.
Meanwhile, Geely is also expanding its European production base independently of Volvo. Together with Ford, the group plans to manufacture two battery-electric SUVs in Valencia, Spain, from 2028, and both manufacturers are also set to jointly develop another model for the European market. The use of Volvo’s plants would thus represent another building block in Geely’s growing localisation strategy in Europe. However, critical details are still missing: neither the specific Volvo sites involved nor the Geely brands and models slated for production from 2028 have been announced yet.