On Friday afternoon, the first Volvo EX30 rolled off the production line in Ghent, marking a significant milestone for the Belgian automotive industry as Volvo’s only remaining production facility in the country.
Chinese-owned Volvo Car Belgium is a vital player in the Belgian economy, generating nearly €8 billion in revenue in 2023, with the Ghent factory producing 230,527 cars including models such as the EX40, EC40, and V60, employing 6,500 people as the largest industrial employer in East Flanders.
The allocation of a new model is crucial for automotive plants; without it, operations can dwindle, as seen at Audi Brussels where lack of new models led to production halting.
The EX30, targeting urban drivers and young families with a starting price of approximately €39,000 and boasting the lowest CO₂ footprint of any Volvo, is expected to secure the future of Volvo Car Gent.
Initially produced in China, the EX30 is now being manufactured in Ghent due to high European demand, which accounts for 80% of global sales, while also circumventing import tariffs.
This decision is noteworthy amid international trade tensions, particularly between Europe and China, which strain the automotive sector.
Despite Belgium’s known high labour costs, the industry compensates through efficiency and technological advances, exemplified by the rapid setup of the EX30 production line in just eighteen months, an unprecedented achievement for Volvo.
To facilitate production, the Ghent factory underwent a transformation, converting a 40,000 square metre warehouse into a state-of-the-art assembly line with 580 robots, cutting production time in half, thanks to an investment exceeding €200 million, with €3 million contributed by the Flemish government.
In addition to assembling the EX30, Ghent produces key components like the battery and door finishings, shortening the supply chain and lowering the vehicle’s ecological footprint, while striving for climate-neutral production using biogas and electrified ovens in the paint shop.
With the addition of the EX30 to models like the EX40, EC40, and V60, the share of electric vehicles in Belgium’s production of Volvo Cars is set to expand significantly.
