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Volvo's Belgian factory could soon be doing more than building Volvos. As European manufacturers search for ways to make better use of underused production lines, and Chinese automakers look for local assembly to sidestep EU tariffs, the Ghent plant may end up serving both purposes.

The company has signed a Memorandum of Understanding with Belgium's federal government and the regional government of Flanders aimed at strengthening the factory's long-term future. The agreement includes up to €119 million ($136.4 million / £100.8 million) in support for industrial, environmental, and innovation projects, as well as financing programs designed to keep the facility competitive.

Hidden within the announcement is an interesting possibility. Volvo says the Ghent plant could eventually assemble vehicles for other brands under contract, allowing the factory to increase production while boosting manufacturing activity in the region. No names were mentioned, but the statement leaves plenty of room for speculation.

Given that Volvo is part of the Geely Group, several familiar brands immediately come to mind. Polestar, Zeekr, and Lynk & Co could all benefit from producing vehicles in Belgium instead of importing them from China, helping them avoid the higher tariffs imposed by the European Union.

For now, the Ghent facility remains focused on Volvo production, building the EX30, XC40, EX40, EC40, and V60. The factory has been in operation since 1965 and employs around 6,300 people, making it one of Volvo's largest manufacturing sites.