Ghent is one of two car manufacturing plants operated by Volvo Cars in Europe and has produced Volvos since 1965.
Volvo Cars has announced that it’ll produce cars for the new Lynk & Co marque at the former’s manufacturing plant in Ghent, Belgium, from late 2019.
The announcement represents a closer collaboration between the two companies, following Volvo’s acquisition of a 30 per cent stake in Lynk & Co last year. Lynk & Co was launched in 2015 as a new volume brand by Zhejiang Geely Holding, the parent company of Volvo Cars.
By providing Lynk & Co with production capacity at its Ghent plant, Volvo Cars is backing the expansion of the new car brand in Europe and further diversifying its business. Joint production with Lynk & Co will also have a positive effect on cost levels, employment and production volumes at the Ghent plant, while generating further economies of scale related to the Compact Modular Architecture (CMA) used by both Volvo and Lynk & Co.
Volvo’s Ghent plant currently builds the new XC40, a small SUV, which was named the 2018 European Car of the Year last month at the Geneva Motor Show. Ghent also builds the V40 and V40 Cross Country hatchbacks, as well as S60 saloon, and will soon start producing the all-new V60 wagon.
‘We see a big potential for this new brand entering the European market, and we are happy to give Lynk & Co the support of Volvo’s technological and industrial expertise,’ said Hakan Samuelsson, president and CEO of Volvo Cars.