Chinese automaker Geely is actively exploring potential sites for establishing a new manufacturing plant in Europe, though a final decision has yet to be made, company executives told Reuters in Frankfurt.
Li Chuanhai, Vice President of Geely Auto Group, part of Zhejiang Geely Holding Group, emphasised that while discussions are ongoing, the plan is not yet finalised. “It is not 100% yet,” Li said when questioned about the possibility of building a plant in Europe.
Geely is currently in talks with Poland’s new government regarding a potential joint venture for an electric vehicle (EV) plant in the country. However, earlier this year, Polish officials indicated that they did not view Geely as the ideal partner for this venture. Li refrained from providing further details about these discussions.
Nicolas Appelgren, CEO of Geely’s Lynk & Co brand in Europe, confirmed that the company is evaluating various locations across the continent. Lynk & Co, which currently markets only one hybrid model in Europe, is set to introduce a China-made battery-electric car in Italy next month. Appelgren indicated that the brand plans to build its next battery-electric vehicle in Europe but did not provide a specific timeline for this development.
Geely, China’s second-largest automaker by sales — trailing only BYD — owns several notable automotive brands, including Volvo Cars, and has joint ventures with Renault. It also holds stakes in Aston Martin and Mercedes-Benz.
In a related move, Geely has established a base in Frankfurt where it will test 13 “new energy vehicles,” encompassing hybrids, battery-electric cars, and hydrogen vehicles, to ensure they meet European certification standards.
Geely’s initiative reflects a broader trend among Chinese automakers, such as Chery and Great Wall Motor, who are increasingly planning local production facilities in Europe. This move comes in response to the European Commission’s plans to impose stricter trade barriers on imported EVs, including potential tariffs up to 35.3%, with ongoing negotiations with Beijing.