Geely is preparing to manufacture higher-priced models from its brand portfolio at Volvo Cars production facilities in Europe from 2028, marking a potentially significant expansion of the Chinese automaker’s European manufacturing strategy.
The plan would allow Geely to use Volvo’s established production network to increase local manufacturing, although the specific brands, models and factories involved have not yet been confirmed.
Volvo Cars has been considering opening its European manufacturing network to additional brands within Geely Holding for several months.
Those plans now appear to be moving forward. An Conghui, who is taking over as Chairman of Geely Automobile, said during a conference following the company’s first-half results that Volvo’s European plants will play an important role in Geely’s localization strategy.
Production of higher-priced vehicles from Geely’s portfolio is expected to begin in 2028.
The announcement does not identify which models will be built in Volvo facilities. Geely Automobile’s portfolio includes the Geely brand, Zeekr and Lynk & Co., with Zeekr and Lynk & Co. particularly well positioned for a strategy focused on higher-priced vehicles.
However, no specific brand or model has been officially confirmed.
Volvo currently operates major vehicle production facilities in Gothenburg, Sweden, and Ghent, Belgium. The automaker is also preparing a new factory in Košice, Slovakia, with series production scheduled to begin in early 2027.
It remains unclear which of these plants could eventually manufacture Geely-branded vehicles.
The Ghent plant appears to be a particularly interesting possibility. In July, Volvo Cars signed a letter of intent with the Belgian federal government and the Flemish regional government concerning the future of the facility.
The agreement includes a support package of up to €119 million for investments and the long-term future of the plant. Importantly, the agreement also allows for the potential production of vehicles from other brands through contract manufacturing.
That could provide a framework for Geely to use Volvo’s European manufacturing capacity without having to establish an entirely new production facility for every brand.
The proposed arrangement could benefit both sides.
For Geely, manufacturing vehicles in Europe would strengthen its localization strategy and potentially make it easier to serve the European market from within the region. Local production could also help the group respond to the increasingly complex trade and regulatory environment facing Chinese automakers in Europe.
For Volvo, using excess production capacity could improve factory utilization and generate additional volume.
Volvo has been under pressure to improve its business performance. In the second quarter of 2026, the company’s revenue declined 17% year over year, while its operating result was roughly half the level recorded during the same period a year earlier.
Volvo CEO Hakan Samuelsson had already indicated in the spring that Volvo could support Geely’s European expansion by making use of its production capacity.
The latest announcement suggests that this idea is becoming a more concrete part of Geely’s European strategy.
Geely Is Expanding European Production Beyond Volvo
The potential use of Volvo factories is only one part of Geely’s broader European manufacturing push.
Geely is also working with Ford on plans to manufacture two battery-electric SUVs in Valencia, Spain, starting in 2028. The companies are also expected to jointly develop another vehicle specifically for the European market.
That means Geely could have multiple manufacturing routes in Europe by the end of the decade, combining its own partnerships with Volvo’s established production infrastructure.
For Geely’s premium-oriented brands, European production could become particularly important as the company attempts to expand its presence beyond China.
Which Geely EVs Could Be Built in Europe?
For now, it is too early to say which vehicles will eventually roll off Volvo production lines.
Zeekr and Lynk & Co. appear to be natural candidates because both brands occupy more premium positions within Geely’s broader portfolio. The core Geely brand could also be involved, depending on future European product plans.
The decision will likely depend on production capacity, European demand and the models Geely wants to prioritize for local manufacturing.
The timing is also notable. With production potentially starting in 2028, Geely has several years to determine which vehicles make the most sense for European production.
[source: CarNewsChina]
