Volvo Opens European Factories to Geely, Zeekr, and Lynk & Co

Volvo Cars CEO Håkan Samuelsson has invited fellow Geely-owned brands including Geely, Zeekr, and Lynk & Co to utilize Volvo’s manufacturing facilities in Europe, a move that could help Chinese automakers establish local production ahead of stricter European Union industrial regulations.

The proposal comes as Chinese carmakers accelerate efforts to secure manufacturing capacity in Europe amid growing trade barriers and import tariffs.

Volvo sees opportunity in unused factory capacity

Speaking to Autonews, Samuelsson said Chinese brands looking to expand in Europe should consider using Volvo’s existing facilities rather than building new factories from scratch.

“They would have a much shorter and cheaper journey into Europe,” Samuelsson said. “They realize that if they want to be serious in Europe, it’s not just about exports. They need a localization strategy. They should talk to Volvo and see if they can utilize the capacity we already have.”

Volvo operates manufacturing facilities in Sweden and Belgium, while also developing additional production capacity in Slovakia, according to CarUp. The proposal could provide Volvo with additional revenue streams at a time when the automaker is facing declining sales volumes and investing in new production facilities.

For Chinese automakers, local manufacturing offers another advantage: avoiding European tariffs on imported electric vehicles. Current duties can reach as high as 45% for some Chinese-made EVs, creating a strong incentive to shift production closer to European customers.

The push comes ahead of the European Union’s proposed Industrial Accelerator Act, which is expected to introduce stricter requirements for foreign investment and locally manufactured products.

Chinese automakers expand their European footprint

Chinese automakers have rapidly increased their presence in Europe over the past several years. Their combined market share has grown from roughly 0.5% in 2021 to nearly 10% by spring 2026, according to figures cited in the report.

As competition intensifies, several Chinese brands have already secured manufacturing partnerships across Europe. Leapmotor is working with Stellantis in Spain, Chery has explored production opportunities with Nissan in the United Kingdom, and SAIC is planning its own factory in Spain. Meanwhile, BYD is preparing to begin production at its new facility in Hungary while evaluating additional manufacturing opportunities elsewhere in Europe.

The trend has sparked debate within the European automotive industry. Supporters argue that utilizing underused factories can preserve jobs and improve factory utilization rates. Critics, however, warn that increased dependence on Chinese automakers could eventually weaken Europe’s control over automotive technology, supply chains, and profitability.

Industry observers expect Chinese automakers to continue pursuing European production opportunities as they seek to strengthen their position in one of the world’s largest automotive markets.

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