Support measures for Volvo in Belgium and electric-based commercial performance in Romania
Swedish carmaker Volvo Cars has taken a decisive step to secure its competitiveness on the European continent. The company has signed a memorandum of understanding with the federal authorities of Belgium and the regional government of Flanders for a substantial package of financial support measures valued at up to 119 million euros. The initiative comes at an important strategic moment for the manufacturer, coinciding with a remarkable commercial performance recorded in the Romanian market, where the brand is consolidating its transition to electrification.
The Ghent plant becomes a strategic multi-brand hub
The funds allocated through the new support agreement will cover complex industrial projects, innovation and environmental initiatives, as well as associated financing schemes. The main purpose of this package is to give Volvo Cars the strategic flexibility to make significant investments aimed at strengthening the Ghent plant's role as a major global manufacturing hub.
A very important part of the memorandum is the opening of the factory to contract assembly of models belonging to other brands of the Chinese concern Geely, the majority owner of the Swedish manufacturer. This strategy will allow for a much more efficient use of production capacity and will stimulate industrial activity in the region.
The capital injection, coupled with internal efficiency measures adopted by the company, aims to improve the long-term competitiveness of the Volvo Car Gent plant, maintain high volumes and ensure the continuity of manufacturing activities. The plant in Belgium is a critical pillar for Volvo, being one of only two production plants the manufacturer owns in Europe and the largest industrial employer in the Flanders region, with a team of over 6,300 employees.
The performance of the industrial site is already proven: in 2025, the factory produced 212,177 cars. Currently, the XC40, EX40, EC40, V60 and the new fully electric compact SUV EX30 are rolling off the assembly lines in Ghent.
Romania delivers performance: Historical record focused on green propulsion
While the industrial network in Belgium receives funds for modernization, Volvo Car Romania reports excellent commercial results, agilely adapting to the demands of a dynamic market. The manufacturer ended 2025 with a new record of deliveries on the local market, managing to distribute 1,562 new cars, up 4% compared to the previous year.
The defining element for the brand's evolution in Romania is the customer appetite for electrification. 100% electric cars (BEV) and plug-in hybrid versions (PHEV) represented no less than 49% of total deliveries on the domestic market (759 units), the segment registering a 7% increase compared to the previous year. This dynamic underlines the profile of the Romanian Volvo buyer, clearly oriented towards sustainable technology, even in a market context marked by uncertainties related to the value of government incentives through the Rabla Plus program. To secure the customer transition to clean mobility, the importer has implemented direct support measures, such as the "EcoBonus Instant" campaigns for the EX30, EX40, EC40 models and the new top SUV EX90.
In terms of model preferences, the XC60 SUV maintains its undisputed leader status in Romania, recording 501 units delivered in 2025. Last year also marked a symbolic turning point for the local portfolio: Volvo delivered its last models equipped with diesel engines in Romania (representing less than 2% of total volume), in line with the global strategy of permanently eliminating this engine from production.
Through industrial modernization in Belgium and commercial success based on electrification in Romania, Volvo is strengthening its position in the European premium segment, demonstrating adaptability in the face of economic restructuring and new global environmental requirements.