Volvo Deepens Ties With Geely, Risks US Fallout Like Polestar

Sixteen years after China’s Zhejiang Geely Holding Group bought Volvo Cars from Ford, the Swedish automaker has long insisted it operates independently, with its own board and product development in Gothenburg. That wall between Volvo and its Chinese parent is starting to come down.

1%. ” Volvo seems unfazed that its China ties could get it banned from the US, the same fate that befell Polestar, another Geely-owned brand spun off from Volvo, which was barred from selling cars in 2027 over Chinese tech concerns.

Speculation about deeper collaboration began Wednesday, when Volvo announced its Ghent, Belgium, plant would receive $136 million in Belgian and Flemish government support to upgrade for future vehicle programs. The factory currently builds plug-in hybrids and EVs like the EX30 crossover, but the renovations open the door for contract assembly of other brands.

During the earnings call, Samuelsson confirmed Geely brand cars could be assembled in Ghent, complying with strict EU rules on vehicle information and communication technology. ” But the manufacturing collaboration goes beyond Belgium. While Volvo cars will mostly stay in Volvo factories, Samuelsson said “some of them might be built with the platform technology from Geely, especially in China.

” He didn’t rule out Geely using Volvo’s SPA3 architecture, either.

Volvo is promoting “common platforms” across the group. “We would like to promote common platforms in the group, and we will use some of their platforms for cars now we will build in China,” Samuelsson said. “And then, of course, we would discuss if they would use this platform in the future.

” On a brighter note, the all-new EX60 midsize electric crossover is off to a strong start in Europe, with Volvo aiming to build up to 40,000 units this year. At its South Carolina plant, beyond adding XC60 assembly, Samuelsson said the factory will keep building “multi-fuel cars”, both gas and EV powertrains, and teased “more investments in Charleston into a very attractive bigger car for the US market,” likely a hybrid SUV.

The big question remains: With the Chinese market slowing and overcapacity looming, how far will Volvo and Geely go in sharing designs and engineering? And if the US government sees too much Chinese DNA in Volvo’s cars, the Swedish brand could face the same exit door as Polestar.