Volvo Cars has signed a letter of intent with Belgian authorities for financial support of up to €119 million from the federal government and the Flanders regional authority, the automaker said on Tuesday.
The funding is earmarked for industrial investment, innovation and environmental initiatives at Volvo's factory near Ghent. CEO Håkan Samuelsson said the measures will strengthen the plant's competitiveness and secure its long-term future as a production site in Belgium. Volvo has also indicated it could open the Ghent facility to contract assembly of vehicles for other brands to better utilise capacity.
Flemish Minister-President Matthias Diependaele and Prime Minister Bart De Wever welcomed the agreement. Volvo Cars is majority-owned by China's Geely.