Volvo, the renowned Swedish automaker, is gearing up for a significant expansion of its electric vehicle production, with its Belgian plant playing a key role.
The company announced that the assembly of the EX30 electric SUV will take place at its Ghent plant in Belgium starting in 2025. The EX30, which is the latest addition to Volvo's electric vehicle lineup, is currently being manufactured in China and is anticipated to become one of the brand's best-selling models.
Volvo's strategy to produce its best-selling models both in China and Europe is essential for complying with changing regulations and incentives in the automobile industry.
The European Commission is investigating allegations of Chinese electric car dumping, potentially leading to sanctions. Countries like France are also tightening the criteria for granting ecological bonuses, which could impact cars produced in China.
Putting Belgian plant on the map
The move comes in response to the growing demand for eco-friendly vehicles. The company believes the EX30 is strategically positioned to cater to the burgeoning electric company car market, in line with the increasing adoption of electric vehicles due to legal mandates.
The compact electric SUV is priced under €40,000, making it eligible for the recently announced bonus of €5,000 for electric cars in Flanders.
It is also set to be a milestone for the 7,000 employees working at the Ghent facility, known for specialising in the production of the group's smallest models and currently building the XC40 and the C40.
Despite experiencing some challenges in recent years, including disruptions caused by the Covid-19 pandemic and a shortage of critical components such as semiconductor chips, the Ghent plant has helped respond to the high demand for its existing electric models, while contributing to job security in the region.
The plant has not yet reached its maximum production capacity of 250,000 cars, but Stefan Fesser, the Ghent plant manager, emphasised in an interview with L'Echo that this development would enhance the plant's role within Volvo's global production network and ensure its long-term viability.
The EX30 joins the XC40 and C40 as the third all-electric model produced in Europe, reflecting Volvo's commitment to increasing electric vehicle production in the region.
Related News
- Volvo Ghent builds Belgium's first electric truck
- Electric cars already cheaper, bar smaller models
- Electric vehicles fast becoming preferred for company cars in Belgium
The XC40, available in various powertrains, stands as one of the best-selling models in Belgium, while the C40 exclusively comes in an electric version. The plant also manufactures the V60, although it lacks a 100% electric variant.
In 2022, the Ghent plant rolled out 192,991 vehicles, with one-third being fully electric. Volvo aims to produce only electric vehicles by 2030 and to achieve carbon neutrality by 2040.
