Volvo Becomes Geely's European Back Door: Same Factories, Different Badges

Volvo Cars CEO Håkan Samuelsson says European factories in Sweden, Belgium and Slovakia could assemble sister brands Geely, Zeekr and Lynk & Co to bypass EU duties on Chinese EVs.

Volvo may take on a new role within China's Geely group. According to Volvo Cars CEO Håkan Samuelsson, the brand's European plants could in future also build vehicles for sister brands Geely, Zeekr and Lynk & Co. He argues this route would be faster and cheaper than putting up new factories in Europe.

The reasoning isn't just about timelines. Manufacturing inside the EU would help Geely cut its reliance on EV imports from China and sidestep part of the extra duties. For Geely's electric cars those amount to 18.8% on top of the EU's general 10% import tariff. Against that backdrop other Chinese brands are accelerating localisation: BYD is preparing output in Hungary, MG Motor has flagged assembly plans in Spain, and Chery is in talks about possible production at Nissan's plant in Sunderland, UK.

Volvo runs sites in Torslanda, Sweden and Ghent, Belgium, with a new plant due to open in Košice, Slovakia in 2027. Samuelsson believes additional assembly of sister brands is feasible at each of these three facilities. Geely, meanwhile, is setting aggressive targets: in 2026 the group wants to sell 750,000 cars outside China, and by 2027 Zeekr, Lynk & Co and Geely combined should hit 1 million vehicles.

Chinese brands increasingly want not just to export cars but to build them closer to the buyer. That could reshape costs, logistics and how the brands are perceived in key markets. Even so, Volvo is keen to stress it won't lose its independence. Samuelsson said Volvo would not be «squeezed» into any shared structure, and that each brand has to keep its own identity.