Volvo lets Geely‑owned Chinese brands use its European factories

Volvo Cars announced it will raise production capacity at its plants in Sweden, Belgium and Slovakia and is inviting Geely‑owned brands such as Zeekr and Lynk & Co to manufacture vehicles there. The move aims to utilise unused factory capacity, generate additional revenue for Volvo and help Chinese manufacturers avoid EU import duties that can reach up to 45%.

Volvo’s chief executive Hakan Samuelsson said the proposal offers a shorter, cheaper route to the European market and aligns with the European Union’s Industrial Accelerator Act, which tightens rules on foreign investment and local production. One of the plants is located close to the Polish border, underscoring the strategic position of the expanded capacity.