Geely is widening its European manufacturing footprint, with plans for Volvo Cars’ factories to build high-end group vehicles from 2028 while two Geely electric SUVs are also headed for Ford’s Valencia plant in Spain.
Geely Auto’s incoming chairman An Conghui disclosed the Volvo plan at Geely Auto’s interim-results briefing on Aug 17.
Chinese publication Jiemian reported that Volvo’s European factories would become an important production base for Geely’s high-end and luxury vehicles, with production expected from 2028.
Reuters separately reported An as saying Volvo’s European factories would make luxury models for other Geely-owned brands.
Geely has not identified which brands, models or Volvo factories will be involved. Its portfolio includes Zeekr and Lynk & Co, but there is no confirmation that either has been assigned to the Volvo programme.
The move builds on a strategy Geely had already signalled earlier this year.
Founder Li Shufu said in March that the group intended to make greater use of Volvo’s existing European manufacturing capacity rather than build new overseas factories.
Volvo has plants in Belgium and Sweden, with another factory in Slovakia due to add further European capacity.
Ghent in Belgium is one possible location, but Volvo has not linked it to Geely’s 2028 plan. Volvo said in July that improving the Belgian plant’s competitiveness could include contract assembly for other brands.
Geely is taking a parallel route in Spain. Its joint venture with Ford will build two Geely electric SUVs at the Valencia factory, starting with the EX5 in 2028. Ford will own 66% of the venture and Geely 34%.
The European push comes with bigger sales ambitions. Geely is targeting about 600,000 annual sales in Europe within two to three years, while An said the company’s longer-term goal is for two-thirds of sales to come from outside China.
The announcement also coincided with a leadership change at listed Geely Auto.
An takes over as chairman from Li Shufu today, while Gan Jiayue becomes chief executive. Li remains chairman of parent Geely Holding Group.
