Volvo will open factories in Europe for Geely’s brands beginning in 2028. This is a move to avoid tariffs and poor sales performance.
Geely plans to use Volvo’s European plants to produce higher-end models of its own brands starting in 2028. Following the appointment of a new chairman, Geely Automobile appears to be advancing another phase of localizing production in the EU, alongside plans in Spain and with support from the Belgian government for a factory in Ghent.
This is a clear signal to drivers in Europe. Chinese conglomerates are increasingly preparing not only to sell in the EU but also to produce locally.
Geely wants to enter Volvo’s factories. No models specified for now
According to information disclosed alongside the group’s half-year results, Volvo’s factories in Europe are set to become one of the pillars of Geely’s localization strategy. Production is expected to begin in 2028, focusing on higher-priced vehicles from the group’s portfolio.
At this stage, no specific model names or even brands have been mentioned. In practice, the most logical candidates are Zeekr and Lynk & Co, as both brands are positioned above Geely’s basic models. However, this remains a hypothesis, not confirmation.
Volvo currently has factories in Gothenburg and Ghent, and starting from 2027, a new plant in Kosice, Slovakia, is set to begin mass production as well. It has not yet been announced which of these facilities will take over Geely’s vehicle production starting in 2028.
Ghent Has Already Received Political Approval
The most interesting lead points to Belgium. In July, Volvo signed a letter of intent with the Belgian federal government and the Flemish authorities regarding the future of its factory in Ghent. The support package is expected to amount to 119 million euros and includes investments as well as long-term guarantees for the factory’s operation.
This agreement explicitly states the possibility of future contract manufacturing for other brands. It sounds like groundwork is being laid specifically for Geely. Not proof, but a strong indication.
From Volvo’s perspective, such an arrangement is also convenient. In the second quarter of 2026, the company’s revenue dropped by 17 percent, and its operating profit halved year over year. If production capacity isn’t fully utilized, adding vehicles from sister brands seems sensible. Marketing likes to talk about synergies. Factories simply prefer not to sit idle.
Power shift at Geely and another front in Spain
The entire operation coincided with a change at the top of Geely Automobile. On August 18, An Conghui is set to take over as chairman, replacing the group’s founder Li Shufu in leading the company’s publicly traded automotive division. However, Li remains chairman of the entire Zhejiang Geely Holding.
This is not just a personnel reshuffle. An Conghui was previously closely linked to Zeekr, among others, and with the change in leadership, the group has also announced stronger collaboration within its own brands.
Meanwhile, Geely is expanding its European production beyond Volvo. Together with Ford, it plans to manufacture two electric SUVs in Valencia starting in 2028, and the two companies also intend to develop another model for the European market. If these plans succeed, Geely will have several footholds in the EU instead of just one.
Two things are important for Poland. First, production in the EU could facilitate the entry of more Geely brands into our market. Second, location does not guarantee low prices. Since these are “higher-end” cars, they are unlikely to be cheap.
Geely is doing what many Chinese manufacturers will have to try in Europe: less imports, more local sheet metal. Which brand do you think will be the first to use Volvo’s factories—Zeekr or Lynk & Co?
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