Volvo Car Gets $136 Million Support Package for Belgian Plant

By Dominic Chopping

STOCKHOLM--Volvo Car agreed on a support package worth up to 119 million euros ($136.4 million) from the Belgian government to strengthen the competitiveness of the Swedish automaker's plant in the country.

The memorandum of understanding with the Belgian federal government and the regional government of Flanders covers industrial, innovation and ecological initiatives, as well as financing programs and measures, it said.

"With this, Volvo Cars can pursue strategic investments to further develop the Ghent plant as a key manufacturing site," the company said.

The Ghent plant is one of six Volvo Car global manufacturing sites, with others in Sweden, the U.S. and China. The site manufactures the EX30, XC40, EX40, EC40 and V60 models and produced over 212,000 vehicles last year. Ghent employs around 6,300 people.

The company is expecting a challenging year for the industry with continued pricing pressure from a competitive market, tariffs, and softer consumer sentiment. It is working through a comprehensive cost-saving plan as it seeks 5 billion kronor ($521.2 million) in reduced indirect and variable costs this year after it completed an 18 billion-kronor cost-saving plan last year.

The deal announced late Wednesday is expected to secure continued manufacturing of Volvo cars in Ghent while also opening possible opportunities to use the site for contract assembly of cars from other brands. This would lead to increased utilization of the plant and contribute to industrial activity in the region, it said.

"Creating the right framework conditions, including fostering a competitive investment climate, strengthens our country's position as an attractive location for high-quality industrial employment in Europe," said Belgian Prime Minister Bart De Wever.

"This MoU helps secure the future of the Ghent plant and anchor advanced vehicle manufacturing in Belgium for the long term," he added.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

July 16, 2026 03:35 ET (07:35 GMT)