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Volvo Car AB (publ): Volvo Cars takes steps to strengthen long-term competitiveness of Volvo Car Gent
Volvo Cars has signed a Memorandum of Understanding (MoU) with the Belgian federal government and the regional government of Flanders for measures that will strengthen the long-term competitiveness of Volvo Cars' manufacturing plant in Ghent.
It has been agreed to work towards support measures that include a package of up to EUR 119 million which covers industrial, innovation and ecological initiatives, as well as financing programmes and measures. With this, Volvo Cars can pursue strategic investments to further develop the Ghent plant as a key manufacturing site.
Together with Volvo Cars' own efficiency actions, these measures are expected to strengthen the long-term competitiveness of Volvo Car Gent, help secure the future utilisation of the plant and support continued manufacturing activity.
In addition to the continued building of Volvo cars, this could also create possible opportunities to use Volvo Car Gent for contract assembly of cars of other brands. This would lead to increased utilisation of the plant and contribute to industrial activity in the region.
"Volvo Cars has been part of Flanders' industrial fabric for decades," says Flemish Prime Minister Matthias Diependaele. "Today, we are building the next chapter of that long-standing partnership. By creating the conditions for new investments, we are securing a strong industrial future for the Ghent site and the wider automotive ecosystem around it. That is how we secure long-term prosperity in Flanders."
"Creating the right framework conditions, including fostering a competitive investment climate, strengthens our country's position as an attractive location for high-quality industrial employment in Europe," adds Belgian Prime Minister Bart De Wever. "This MoU helps secure the future of the Ghent plant and anchor advanced vehicle manufacturing in Belgium for the long term."
"We appreciate the engagement and support from the Belgian federal and Flanders regional governments," said Håkan Samuelsson, President and CEO of Volvo Cars. "Volvo Car Gent is a highly capable plant with an experienced team. With these necessary improvements in competitiveness, we are strengthening its future as a car plant in Belgium."