Swedish carmaker Volvo has announced it will build its popular EX30, a compact electric SUV, at its Ghent plant from 2025 onwards. The decision is a boost for the Ghent workforce totalling over 7,000 employees. Volvo is one of the largest industrial employers in Flanders.
In June, Volvo, owned by China's Geely, launched a new compact electric SUV. Priced from around 38,990 euros, the EX30 is also slightly cheaper than comparable models.
The model is catching on: the Volvo says current production capacity in China is not sufficient and that the Ghent plant will have to play its role in order to deal with global demand for the electric model from 2025 onwards.
Only electric
In addition to the XC40 and C40 models, Volvo EX30 is the third all-electric Volvo to be produced in Europe. "We are strengthening Volvo Cars' production capacity for electric cars in the region," the company’s international headquarters notes. "We would like to emphasise the important role the Ghent plant plays in the company's electrification strategy."
In 2022, Volvo Cars Gent produced 192,991 cars. Until now, the factory has focused on 3 models: the compact SUV XC40, the all-electric C40 and the break V60. Last year, a third of all the vehicles built were all-electric. Volvo hopes to produce only electric vehicles by 2030.
"Beautiful day"
Dominique Strubbe of the socialist union ABVV speaks of a "great day at Volvo Cars Gent". "I think we can be very proud of our employees, who every day do their best to produce quality cars."
"The fact that this model will be produced here is linked to the fact that all the models we build here have been a success. That plays to our advantage. Moreover, it also fits into Volvo's strategy: build where you sell. All small SUV models will now be built here."
The boost in Ghent contrasts with gloomy news from German carmaker Audi in Brussels. Earlier this month, Audi had to announce that it will suspend production of the promised electric Q4 model at its Brussels plant. It’s a sledgehammer blow for the 3,000 permanent and 500 temporary workers and triggered several strike actions.