Volvo producing for Lynk & Co
- March 27, 2018
- Posted by: Alan Feldberg
- Category: Industry News
Volvo Cars, the premium car maker, will produce cars for the new car brand Lynk & Co in Volvo Cars’ manufacturing plant in Ghent, Belgium, from late 2019.
The announcement represents a closer collaboration between the two companies, following Volvo Cars’ acquisition of a 30 per cent stake in Lynk & Co last year. Lynk & Co was launched as a new volume brand by Zhejiang Geely Holding, the owner of Volvo Cars, in 2015.
By providing Lynk & Co with production capacity at its Ghent plant, Volvo Cars is backing the expansion of the new car brand in Europe and further diversifying its business.
‘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,’ said Håkan Samuelsson, president and CEO of Volvo Cars.
Joint production with Lynk & Co will also have a positive effect on cost levels, employment and production volumes at the Ghent plant, while generating further economies of scale related to the Compact Modular Architecture (CMA) used by both Volvo Cars and Lynk & Co.
‘Our Ghent plant is one of the most efficient car manufacturing plants in Europe, with a highly skilled workforce,’ said Javier Varela, senior vice president for manufacturing and logistics at Volvo Cars. ‘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.’
The closer collaboration between Volvo Cars and its sister brand comes as the company is entering a phase of global growth following the complete transformation of its business in recent years.