Volvo Will Build Next-Generation Small Car in Belgium

The first car Volvo Car Group launches with its new "compact modular architecture" will be built at the company's factory in Ghent, Belgium, and is likely to be the next-generation V40 small hatch, according to CEO Hakan Samuelsson.

Samuelsson tells Reuters the replacement V40 also will be assembled in China at one of two existing Zhejiang Geely Holding Group factories in Chengdu or a new factory under construction in Luqiao. Geely acquired Volvo Cars five years ago, promising to expand the brand's sales and production in China.

Reuters cites sources who say Geely is expected to begin making a crossover vehicle that rides on the CMA platform at the Luqiao factory at the end of 2016.

Ghent currently assembles the V40 along with Volvo's S60 sport sedan and XC60 crossover vehicle.