Ghent loses its Volvo plant boss but gains an ally at the top

Volvo Car Gent has to start looking for a new plant director less than a year after Magnus Nilsson took charge. But his departure may be better news for the Belgian factory than it first appears.

From September 1, Nilsson becomes Volvo Cars’ Chief Manufacturing Officer and joins the Executive Management Team, just as Ghent is fighting to secure new models and fill future production capacity.

Nilsson only became plant manager on January 1, succeeding Stefan Fesser after more than seven years. Yet he was hardly new to the site. The Swede has worked for Volvo Cars since 1988 and already managed Ghent’s welding operations between 2011 and 2013.

Seat at the company’s top table

In his new job, he will be responsible for Production and Manufacturing Engineering across Volvo Cars. Manufacturing therefore regains a separate seat at the company’s top table, while Francesca Gamboni will concentrate on procurement and supply chain.

The timing is striking. Volvo is trying to cut costs, regionalize production and make better use of its factories in a market where volumes have not grown as once expected. Ghent is particularly exposed.

Ghent currently builds the EX30, EX40, EC40, XC40, and V60, but union sources expect the next-generation electric 40-series to move to Volvo’s new Košice plant starting in 2027. That makes future model allocation crucial for the roughly 6,300 people working in Ghent. In 2025, the factory built 212,177 cars.

Knows exactly what Ghent can do

Nilsson’s promotion does not mean Ghent will automatically win a new car. As global manufacturing chief, he will have to compare the Belgian plant with Volvo’s other factories in terms of cost, technology, logistics, and efficiency.

Still, having someone at the highest level who knows Ghent inside and out is unlikely to hurt. Nilsson has seen firsthand how the plant industrialized the EX30 in record time after Volvo decided to add European production of the compact EV. That flexibility is now one of Ghent’s strongest arguments.

The factory also has other familiar faces higher up in Volvo. Nilsson’s predecessor Stefan Fesser moved into a strategic manufacturing role after leaving Ghent.

Belgian Geert Bruyneel, who ran the factory from 2010 to 2013 and later became Volvo’s global manufacturing chief, is still listed as a senior adviser. He previously reported directly to former CEO Jim Rowan, although Volvo has not publicly confirmed the same reporting line under current CEO Håkan Samuelsson.

Geely opportunity

The bigger prize may not even be another Volvo. Samuelsson has openly said it would be “positive and possible” for sister brands from Chinese parent Geely to use Volvo’s European factories, explicitly mentioning Ghent.

That option became more concrete in July, when Volvo signed a memorandum with the Belgian and Flemish governments on support measures worth up to €119 million.

The package is intended to improve Ghent’s competitiveness and help finance industrial, innovation, and ecological investments. Volvo also explicitly said the plant could be used for contract assembly of cars from other brands.

Geely, Zeekr, or Lynk & Co therefore remain obvious candidates, although no model has been allocated. Local production could also help Chinese-built EVs avoid the additional EU countervailing duties imposed on imports from China.

Ghent still has disadvantages. Belgian labor and energy costs are high, while Košice is a new factory with lower operating costs and technology tailored to Volvo’s next-generation cars. The Belgian site will have to prove that flexibility and location outweigh that cost gap.

But Nilsson’s move changes the optics. Ghent loses another plant manager after barely eight months, yet it gains a former boss in one of Volvo Cars’ most powerful industrial positions. At a moment when every future model matters, that may be a more important development than the vacancy he leaves behind.

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