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Volvo Cars to manufacture Lynk & Co cars at Belgian plant

ABR Staff Writer Published 27 March 2018

Volvo Cars said it will manufacture cars for the new car brand Lynk & Co at its facility in Ghent, Belgium.

The production will start from late 2019. Volvo Cars’ acquired a 30% stake in Lynk & Co last year.

Zhejiang Geely Holding, the owner of Volvo Cars, launched Lynk & Co as a new volume brand in 2015.

By producing Lynk & Co vehicles at is plant, Volvo is expanding the scope for the newly-formed company to market in Europe.

Volvo Cars president and CEO Håkan Samuelsson said: “We see a big potential for this new brand entering the European market and we are happy to give Lynk & Co the support of Volvo’s technological and industrial expertise.”

Ghent is one of Volvo’s two car manufacturing plants in Europe and has been in operations since 1965. Presently it has a workforce of about 5,000 people and builds the XC40, Volvo’s small SUV.

The facility 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.

Volvo Cars manufacturing and logistics senior vice president Javier Varela said: “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.”

By jointly producing the vehicles, the company expects to have a positive effect on cost levels, employment and production volumes at the plant. It also seeks to generate further economies of scale associaated to the Compact Modular Architecture (CMA) used by both Volvo Cars and Lynk & Co.

Volvo stated that this collaboration with its sister brand comes as the company is entering global growth phase and a complete transformation of its business in the recent years.

The company is creating a diversified car company that includes an electrified performance arm, a software start-up, a car subscription business, the stake in Lynk & Co and a technology-sharing joint venture that creates synergies within the  Volvo Car Group and the Zhejiang Geely Holding group.

Image: Volvo Cars to manufacture Lynk & Co vehicles at Ghent. Photo: Courtesy of Volvo Car Corporation.