As Volvo announces that its most popular electric vehicle is the Ghent-made EX30, workers at the plant are breathing easier knowing the Flemish government is providing subsidies in a deal that will keep it up and running
The EX30 compact model is Volvo Cars most popular electric vehicle, the Swedish-based manufacturer announced this week. The EX30 is built in Ghent for the European market. It was a bright spot for Ghent in the larger announcement that Volvo’s second quarter profits were lower than expected.
Volvo Cars, based in Sweden but owned by China’s Geely group, made €75 million in profits during the quarter, far less than the €118 million expected by analysts and investors. Volvo says this is due to a weak Chinese market, heavy competition and higher costs.
The investments being made extend far beyond a year or so—more like for decades
Prime minister Bart De Wever
The news coms on the heels of the announcement that the Flemish government has signed a deal with Volvo Cars that sees support from the government totalling €119 million. Volvo Cars says it will now make the necessary investment in its Ghent plant.
“The future of the factory has been safeguarded,” said prime minister Bart De Wever (N-VA). “We have been talking to their management for months now and have created the conditions to attract investment. The factory is not only safe, but it will grow.”
Volvo: Swedish or Chinese?
You’d be forgiven for being confused as to whether Volvo is owned by its founding country, Sweden, or by the growing economic whirlwind that is China. The answer is: both.
AB Volvo is Swedish multinational that manufactures trucks, buses and a variety of industrial equipment and engines. It sold its car division to Ford Motor Company in 1999. Ford sold Volvo Cars to China’s Geely Holding in 2010.
Volvo Cars is thus a separate company, fully owned by a Chinese group. It is still, however, headquartered in Sweden. Cars are made in Sweden, Belgium, the US, China and Malaysia.
The Chinese-controlled Volvo Cars might begin manufacturing Chinese brands at the Ghent location as well. These would include brands such as Polestar, Lynk&Co and Zeekr.
“From what I am hearing, we can rest assured that the plant will run at full capacity,” said De Wever. “The investments being made extend far beyond a year or so—more like for decades.”
Belgium used to be home to a number of car manufacturing sites. Renault Vilvoorde closed down in 1997, followed by General Motors in Antwerp in 2010, Ford Genk in 2014 and Audi Brussels just last year. Volvo Car Gent is the only remaining car manufacturer in the country.