Geely will begin manufacturing at Volvo plants starting in 2028.
Starting in 2028, Geely will produce higher-priced models from its portfolio at European Volvo factories. This moves the Chinese automaker forward with earlier plans to open its subsidiary Volvo Cars’ production network to other brands within the group. Which models will be produced remains unclear.
According to reports in Handelsblatt, Volvo has been considering opening its European production network to other brands of its Chinese parent company Geely for several months now. The plans are becoming more concrete: An Conghui, the new chairman of Geely Automobile, said during a conference on the company’s half-year results that Volvo’s European factories should serve as a key base for the group’s localization strategy. Higher-priced vehicles from Geely’s portfolio are planned to be produced there, with production set to begin in 2028.
The brands and models that will be chosen for this purpose are not yet known. Geely Automobile includes the core brand Geely, as well as Zeekr and Lynk & Co. It is these latter two brands that are considered due to their positioning for the planned production of higher-priced models, though this has not been confirmed yet.
The statements coincide with a leadership change at Geely Automobile. An Conghui will take over as chairman from Geely founder Li Shufu on August 18. Li Shufu is stepping back from leading the publicly traded automotive division but will remain chairman of the parent company, Zhejiang Geely Holding. An Conghui was previously in charge of Zeekr among other roles. As part of the leadership change, Geely also announced plans to further strengthen collaboration within the group. Volvo currently has manufacturing plants in Gothenburg, Sweden, and Gent, Belgium. An additional plant is set to begin mass production in Kosice, Slovakia, at the beginning of 2027. It remains unclear which of these locations will produce Geely models starting in 2028.
Gent was particularly mentioned as early as July in connection with a possible contract manufacturing operation. Volvo Cars has signed a letter of intent with the Belgian federal government and the Flemish regional government regarding the future of the plant. A support package worth up to 119 million euros for investments and the long-term sustainability of the site is under consideration, which explicitly includes the option to manufacture vehicles for other brands in Gent in the future.
Volvo CEO Hakan Samuelsson had already stated in the spring that he could support Geely in its expansion into Europe by providing production capacity. For Volvo, such a partnership would also allow for higher utilization of its own factories, which is relevant given recent business performance: In the second quarter of 2026, the Swedish company’s sales dropped by 17 percent, while its operating profit was roughly halved compared to the same period last year.
Geely is also building its own European production base separate from Volvo. Together with Ford, the company plans to manufacture two electric SUVs in Valencia, Spain, starting in 2028, with both manufacturers aiming to develop another model for the European market as well. Using Volvo’s factories would represent another step in Geely’s increasing localization efforts in Europe. However, the key details are still missing: neither the specific Volvo locations nor the Geely brands and models for production starting in 2028 have been announced yet.