Volvo Cars will produce cars for the new car brand Lynk & Co in Volvo Cars’ manufacturing plant in Ghent, Belgium from late 2019. The announcement represents a closer collaboration between the two companies, following Volvo Cars’ acquisition of a 30% stake in Lynk & Co last year. Lynk & Co was launched as a new volume brand by Zhejiang Geely Holding, the owner of Volvo Cars, in 2015.
We will manufacture in Europe, for Europe, focusing initially on hybrid-only electrified derivatives of our new range of cars. Our vehicles share the innovative Compact Modular Architecture (CMA) with Volvo, therefore it makes absolute sense that we commence European production for Lynk & Co alongside a brand with the absolute trustmark and global recognition in safety, quality, design and international appeal. We could not wish for a better start in our home markets.
—Lynk & Co Senior Vice President, Alain Visser
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 Cars and Lynk & Co.
Ghent is one of two car manufacturing plants operated by Volvo Cars in Europe and has produced Volvos since 1965. At the moment it employs around 5,000 people.
The Ghent plant currently builds the XC40, Volvo’s first entry in the fast-growing small SUV segment, which was named 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 the S60 sedan, and will soon start producing the all-new V60 five-door, mid-size estate revealed in February this year.
Besides Volvo Cars’ holding of 30% of the shares in Lynk & Co, Geely Auto owns 50% and Zhejiang Geely Holding 20% in Lynk & Co.