The counterparties are the Belgian federal government and the Flemish regional government.
The support of up to 119 million euros may include, among other things, industrial investments, innovation and environmental initiatives, as well as various financing programs.
“Through these necessary measures to strengthen competitiveness, we are creating better conditions for the long-term future of the factory in Belgium,” says Håkan Samuelsson, President and CEO of Volvo Cars, in a press release.
The investments could also create opportunities for contract manufacturing of cars for other brands. This would, among other things, increase the factory's utilisation rate.
Volvo Cars shares rose 5.8 percent on the Stockholm Stock Exchange during the day.
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