Volvo has confirmed that it will produce cars for new car brand Lynk & Co at it's manufacturing plant in Ghent, Belgium starting late 2019.
Lynk & Co was launched as a new volume brand by Zhejiang Geely Holding, in 2015. The announcement represents a closer collaboration between the two companies, following Volvo’s acquisition of a 30 percent stake in Lynk & Co last year.
Besides Volvo's 30 percent stake, Lynk & Co is also co-owned by Geely Auto (50 percent) and Zhejiang Geely Holding (20 percent).
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.
Volvo’s joint production with Lynk & Co will also have a positive effect on cost levels, employment, and production volumes at the Ghent plant, further generating economies of scale related to the Compact Modular Architecture (CMA) platform, used by both Volvo Cars (on the award-winning XC40), and Lynk & Co vehicles.
Ghent is one of two car manufacturing plants (the Torslanda plant being the other one) operated by Volvo Cars in Europe, and has produced Volvos since 1965. The plant has a workforce of around 5,000 people and currently builds the XC40, V40 and V40 Cross Country, S60 sedan, and will soon start producing the all-new V60 estate.
Javier Varela, senior vice president for manufacturing and logistics at Volvo Cars adds, “Our Ghent plant is one of the most efficient car manufacturing plants in Europe with a highly skilled workforce. Lynk & Co’s decision to pick Ghent for their European production demonstrates the high levels of quality control that underpin Volvo’s global manufacturing strategy.”