Geely Plans European Production of Higher-Priced Models at Volvo Plants From 2028

Geely plans to manufacture higher-priced models from its brand portfolio at Volvo Cars’ European production facilities from 2028, according to comments by An Conghui, the newly appointed chairman of Geely Automobile. The move would expand the use of Volvo’s manufacturing network within Geely’s wider European localisation strategy, although the specific plants, brands and models involved have not yet been announced.

According to Handelsblatt, Volvo has been considering opening its European production network to other brands within Geely’s portfolio. An Conghui said Volvo’s European plants would form a key part of the group’s localisation strategy, with production of higher-priced Geely vehicles planned from 2028.

Volvo Plants Could Produce Other Geely Models

The proposed arrangement would allow Geely to use manufacturing capacity within Volvo’s European network for vehicles from other brands in the group.

It remains unclear which models will be selected. Geely Automobile’s portfolio includes the Geely, Zeekr and Lynk & Co brands. Zeekr and Lynk & Co are positioned toward higher-priced segments, but Geely has not confirmed whether either brand will use Volvo’s European facilities.

Volvo currently operates vehicle production facilities in Gothenburg, Sweden, and Ghent, Belgium. A new plant in Košice, Slovakia, is scheduled to begin series production in early 2027.

Geely has not specified which of these facilities could manufacture its vehicles from 2028.

Ghent Already Considered for Contract Manufacturing

Volvo’s Ghent facility has previously been linked to the possibility of manufacturing vehicles for other brands.

In July, Volvo Cars signed a letter of intent with the Belgian federal government and Flemish regional government concerning the future of the plant. The agreement includes a support package of up to €119 million for investments and the long-term development of the site.

The agreement also allows for potential production of vehicles from other brands under contract manufacturing arrangements.

The development could provide a framework for Geely to use Volvo’s existing European production capacity, although no decision has been announced regarding Ghent specifically.

Geely Leadership Signals Greater Group Cooperation

The production plans coincide with a change in Geely Automobile’s senior leadership.

An Conghui became chairman on Aug. 18, succeeding founder Li Shufu. Li stepped back from the leadership of the listed automotive division but remains chairman of Zhejiang Geely Holding Group.

An previously held responsibilities including leadership of Zeekr. The leadership transition also comes with plans to strengthen cooperation among companies within the wider Geely group.

For Volvo, greater use of its plants by other Geely brands could provide additional production volumes at a time when the Swedish automaker is facing weaker financial performance.

Volvo’s revenue declined 17% year on year in the second quarter of 2026, while its operating result fell by half compared with the same period a year earlier.

Geely Expands European Manufacturing Network

The proposed use of Volvo plants would add to Geely’s broader efforts to establish manufacturing capacity closer to European customers.

Separately, Geely and Ford plan to manufacture two battery-electric SUVs in Valencia, Spain, from 2028. The companies also plan to jointly develop another vehicle for the European market.

Using Volvo’s existing facilities would therefore provide another potential route for Geely to increase local production in Europe.

However, key details of the plan remain unresolved. Geely has not announced which Volvo facilities will be used, which brands will participate or which models will enter production from 2028.