The investment could also enable contract manufacturing for other automakers.Volvo Cars has signed a memorandum of understanding (MoU) with Belgium’s federal government and the Flanders regional government to support the long-term competitiveness of its Ghent plant, the Swedish carmaker said on Wednesday.
The parties agreed to “work towards support measures” that include a package of up to €119 million ($136 million) for the plant.
With this, Volvo Cars can pursue strategic investments to further develop the Ghent plant as a key manufacturing site.
In addition to the continued building of Volvo’s cars, this could also create opportunities to use Volvo Car Ghent for contract assembly of cars of other brands.
