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Geely to Unveil Its First European-Specific Car in 2027 as It Targets the European Market

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Geely is preparing a major step in its European expansion, with the Chinese automotive giant set to unveil its first car developed specifically for European customers in 2027. Designed at the company’s European headquarters in Milan, the new model will mark a shift in strategy as Geely moves beyond adapting vehicles originally developed for China and begins creating products tailored to European tastes, driving conditions, and regulations.

The announcement signals Geely’s growing ambitions in Europe, where competition among Chinese automakers is intensifying. The group, which also owns Volvo, Polestar, and Lotus, entered the European market with models such as the Geely EX5 electric SUV and the Starray EM-i plug-in hybrid. Rather than relying exclusively on vehicles developed for its domestic market, the company now plans to give European customers a more distinctive product offering.

According to Geely product definition director Dennis Weinel, the first European-specific model is already in development and will be revealed next year. The vehicle will initially target Europe before potentially expanding into other international markets.

“This is really a product for Europe, and then from Europe it will go to other markets,” Weinel explained in an interview with Autocar.

Geely’s First European-Specific Model Is Being Developed in Milan

The upcoming vehicle represents an important evolution in Geely’s approach to the European automotive market. Until now, the company’s initial European models have largely been adapted from vehicles conceived primarily for Chinese buyers.

Weinel described these existing products as part of Geely’s “legacy portfolio,” explaining that the company had selected models according to its priorities for entering Europe and then made the necessary adjustments for local customers.

“The book was already written to a certain extent and we did the last mile on it,” he said.

That approach is now changing. Geely wants its future vehicles to reflect European expectations from the beginning of the development process, rather than relying on modifications made after a car has already been designed for another market.

Developing its first European-specific vehicle in Milan could give the brand a better understanding of regional preferences, from interior design and infotainment functionality to driver assistance systems and everyday usability.

Geely has not yet revealed the new model’s name, body style, powertrain, or technical specifications. Those details should become clearer as the planned 2027 unveiling approaches.

Geely Galaxy Cruiser Will Lead the Brand’s European Expansion

Before the arrival of its first fully European-developed car, Geely is preparing to expand its range with several new models, including a rugged SUV designed to challenge established off-roaders.

Codenamed Project KO11, the vehicle is a European-market version of the Geely Galaxy Cruiser, a model recently introduced in China. Its positioning places it in the territory occupied by the Land Rover Defender, combining an imposing exterior with hardware intended for demanding off-road conditions.

The Galaxy Cruiser features an impressive claimed wading depth of 800 millimeters, highlighting its focus on adventure driving and challenging terrain. It also shares its underlying architecture with the forthcoming plug-in hybrid version of the Lotus Eletre, although its engineering and styling priorities are directed toward a very different type of vehicle.

For Geely, the KO11 could serve as a halo model, helping establish a stronger brand identity and demonstrating the breadth of the group’s engineering capabilities.

The model will also help expand Geely’s European portfolio beyond conventional electric SUVs and plug-in hybrid family cars.

Geely Is Redesigning Its Infotainment System for European Drivers

Vehicle development is only one part of Geely’s European strategy. The company is also working to improve the software and technology that drivers interact with every day.

One of the most significant changes involves Flyme, Geely’s infotainment system. The current generation retains much of the interface and functionality used in China, but the company recognizes that European customers have different expectations.

A second-generation Flyme system is now in development, with a planned rollout in 2027. According to Weinel, the updated interface will place greater emphasis on multitasking, split-screen functionality, relevant information, and customizable widgets.

These changes could make the system more intuitive for drivers who expect a greater degree of flexibility and personalization from modern vehicle infotainment systems.

The update is particularly important as Chinese manufacturers increasingly compete with European brands on software quality, digital interfaces, and connected-car technology. An infotainment system that feels natural to European users could help Geely strengthen its appeal in a market where the overall ownership experience matters as much as the vehicle’s hardware.

Geely Responds to Criticism of Driver Assistance Alerts

Geely is also addressing complaints about the warning sounds generated by its driver assistance systems. Frequent alerts, intrusive chimes, and poorly timed warnings have become a source of frustration for some drivers across the automotive industry, particularly as manufacturers introduce increasingly sophisticated safety technologies.

Weinel identified three areas that Geely is working to improve: the volume of warning sounds, their acoustic character, and the logic determining when they are triggered.

“We are now addressing all three points to make this what our customers prefer while still being under the regulation,” he said.

The challenge is to make these systems less intrusive without compromising their safety functions or violating applicable regulations.

This work reflects a broader issue facing automakers operating in Europe, where increasingly comprehensive driver assistance requirements can introduce additional warnings and interventions into everyday driving. Finding the right balance between regulatory compliance and a comfortable driving experience could become an important differentiator for Geely.

The company says the changes are based on lessons learned from its initial European launch, suggesting that customer and media feedback is already influencing its product development priorities.

Geely Plans to Launch 10 Cars in the UK by 2030

Geely’s European ambitions extend well beyond a single new model. The company plans to introduce 10 cars in the United Kingdom by 2030, building a broader range designed to appeal to different customer groups and price segments.

Its current lineup includes the EX5 electric SUV, the Starray EM-i plug-in hybrid, and the EX2 electric supermini. The range is expected to grow to five models with the addition of the Monjaro plug-in hybrid SUV and the KO11 off-roader.

The first European-specific model, scheduled to be unveiled in 2027, will represent a further step in that expansion.

Geely’s strategy also reflects a wider shift among Chinese carmakers seeking to establish themselves in Europe. Initial market entries often rely on existing domestic-market products, allowing manufacturers to build sales networks and establish brand recognition relatively quickly. Over time, however, local development and production can help companies respond more effectively to regional expectations.

BYD is pursuing a similar approach, having entered Europe with models originally developed for China before moving toward products tailored more closely to European requirements. Its Dolphin G plug-in hybrid supermini, which is planned for production in Hungary, illustrates the growing importance of regional product development and manufacturing.

For Geely, the objective is to evolve from a manufacturer adapting existing vehicles for European buyers into a brand capable of developing products with European customers in mind from the outset.

Can Geely Compete More Effectively With European Brands?

The launch of Geely’s first European-specific car could prove significant as competition in the region becomes increasingly crowded. Chinese manufacturers are expanding their presence with electric vehicles, plug-in hybrids, advanced digital technology, and increasingly ambitious product portfolios.

Geely has several advantages, including access to the wider group’s engineering resources and its connections to established automotive brands such as Volvo, Polestar, and Lotus. However, success in Europe will depend on more than competitive specifications or attractive pricing.

Local customer preferences, software usability, driver assistance calibration, brand recognition, aftersales support, and the ability to meet European expectations will all play important roles.

The company’s decision to develop a car in Milan suggests that it understands the importance of local expertise. Its work on the Flyme infotainment system and driver assistance alerts also indicates that Geely is willing to revise existing products in response to feedback.

The crucial question is whether these improvements will translate into vehicles that feel genuinely designed for Europe rather than simply adapted for it.

With its first European-specific model scheduled for a 2027 debut, Geely is preparing to enter the next phase of its expansion. If the company can combine its technological resources with a stronger understanding of European drivers, it could become a more formidable competitor in the years ahead.

Source: Autocar; Photo: Geely

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Volvo Cars Reports $3.7 Billion Operating Loss in Q3 2026, Announces 2,500 Job Cuts

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Volvo Cars is facing mounting financial pressure after reporting a substantial operating loss for the third quarter of 2026, as intensifying competition in China, US tariffs and weaker demand weighed on its performance. The Swedish automaker is responding with an additional SEK 5 billion in cost reductions, a planned structural workforce reduction of approximately 2,500 jobs worldwide and an accelerated product offensive designed to strengthen its position in the global premium car market.

For the July–September period, Volvo Cars reported revenue of SEK 66.9 billion, down from SEK 86.4 billion in the same quarter of 2025. Operating income fell to a loss of SEK 5.6 billion, compared with a profit of SEK 6.4 billion a year earlier.

Excluding income from joint ventures and associates, as well as items affecting comparability, the company recorded an operating loss of SEK 3.7 billion. Its adjusted EBIT margin deteriorated to -5.6 percent, compared with a positive 6.7 percent in Q3 2025.

Basic earnings per share also moved into negative territory, reaching SEK -1.63 against SEK 1.75 a year earlier. Meanwhile, free cash flow declined to negative SEK 8.9 billion, more than doubling the SEK 4.3 billion outflow reported in the third quarter of 2025.

The results underline the challenges facing Volvo Cars as it attempts to navigate an increasingly competitive electric vehicle market while managing the costs of its transition to electrification.

China and the US Put Pressure on Volvo Cars’ Profitability

According to Volvo Cars, a deteriorating external environment was the primary factor behind its weak third-quarter performance, with China and the United States creating the most significant challenges.

China proved particularly difficult for the Swedish premium manufacturer. Established premium brands are facing intense competition from domestic automakers offering increasingly sophisticated vehicles, advanced technology and aggressive pricing. This competitive pressure has significantly affected Volvo Cars’ sales and profitability, with revenue in China falling by almost 50 percent year over year.

The situation reflects a broader transformation of China’s automotive industry, where local manufacturers are rapidly expanding their electric vehicle portfolios and challenging traditional premium brands on both price and technology.

In the United States, Volvo Cars continued to feel the effects of import tariffs and the removal of consumer incentives for electrified vehicles. These developments put additional pressure on margins at a time when the company was already struggling with lower volumes.

Other factors also contributed to the quarterly loss. Changes in US legislation triggered a negative SEK 1.1 billion revaluation of CAFE credits, while unfavorable raw material developments added further pressure. The company also recognized SEK 0.9 billion in losses related to Polestar’s second-quarter 2026 results.

Taken together, these factors highlight the difficult operating conditions confronting Volvo Cars as it balances global market pressures with substantial investments in its next generation of vehicles.

Volvo Cars Announces SEK 5 Billion in Additional Savings

In response to its financial performance, Volvo Cars plans to cut an additional SEK 5 billion in indirect spending and variable costs, building on cost-reduction programs it has already completed.

The measures will result in a structural workforce reduction of approximately 2,500 positions globally, including around 2,000 jobs in Sweden. The company intends to achieve these reductions through the termination of consultant contracts, natural employee attrition and targeted exit packages.

Volvo Cars expects the full financial benefits of the new measures to be realized by the end of 2027. By that point, total indirect spending is expected to be almost 25 percent lower than in the 2024 financial year.

The cost-cutting strategy extends beyond staffing. The company plans to reduce corporate overheads, simplify its organizational structure and give regional operations greater decision-making authority. It will also continue to reduce research and development expenditure, arguing that its core technological foundations, including the SPA3 vehicle platform and HuginCore computing architecture, have already been established.

Manufacturing efficiency is another priority. Volvo Cars intends to concentrate production around five dedicated Volvo plants worldwide, while exploring the possibility of multi-brand assembly with Geely at its facilities in Chengdu, China, and Ghent, Belgium.

The automaker will also seek additional savings through closer cooperation with Geely Group suppliers and the increased use of common hardware components across its vehicle lineup.

Cash preservation remains central to the turnaround plan. Volvo Cars says it has passed its peak investment phase and returned to more sustainable investment levels, approximately 30 percent below those of 2024.

Håkan Samuelsson, president and CEO of Volvo Cars, said the company continues to face significant external challenges, including de-globalization, intense competition and climate change. He emphasized that additional action is necessary in the short term to lower the company’s break-even point, strengthen cash flow and improve resilience.

Electric Vehicles Remain Central to Volvo Cars’ Strategy

Despite the financial setback, Volvo Cars continues to view electrification as a central pillar of its long-term strategy.

Fully electric vehicles accounted for 32 percent of the company’s global sales in the third quarter of 2026, up from 22 percent in the same period last year. When plug-in hybrids and other electrified vehicles are included, the share increased to 53 percent, compared with 46 percent in Q3 2025.

Europe remains a particularly important market for the company’s electric vehicle ambitions. Volvo Cars reported that fully electric vehicles represented 45 percent of its European sales during the quarter, demonstrating stronger demand in the region than in some of its other major markets.

One of the company’s most important recent launches is the Volvo EX60, which has attracted more than 50,000 orders across Europe. Volvo Cars expects the electric SUV to become one of its most profitable models.

However, the introduction of new industrial technologies, including cell-to-body battery integration, has made the production ramp-up more challenging than originally anticipated. The company says manufacturing volumes are steadily improving as it works to overcome these difficulties.

The EX60’s performance will be important as Volvo Cars seeks to combine competitive electric vehicle technology with improved profitability. Strong order numbers provide an encouraging sign, although converting demand into deliveries while controlling manufacturing costs remains essential.

Volvo Cars Plans 13 New Models by 2030

Alongside its cost-cutting measures, Volvo Cars is preparing what it describes as the largest product offensive in its history. The company plans to introduce 13 new vehicles between now and the end of 2030, with a portfolio tailored to the specific requirements of Europe, the United States and China.

The strategy combines new global models with vehicles developed for individual regional markets. Volvo Cars also intends to expand localized production to reduce exposure to trade barriers and improve its ability to respond to changes in customer demand.

Three new vehicles are scheduled to be revealed in 2027: one intended for Europe and two designed specifically for China.

The European model will target a larger, more affordable electric vehicle segment, with customer deliveries expected to begin after summer 2027. By entering a lower-priced market category, Volvo Cars hopes to broaden its electric vehicle customer base while strengthening sales volumes and margins.

The launch will be particularly important as the automaker seeks to build on the momentum generated by the EX60 and defend its position against increasingly competitive electric vehicles from both established manufacturers and newer entrants.

China Strategy Focuses on Local Development and Geely Cooperation

Volvo Cars expects the next two years to remain challenging in China, where aggressive pricing and the rapid development of domestic automotive technology have reshaped the premium vehicle market.

In response, the company is increasing its focus on cost efficiency and regional product development. It plans to consolidate its two Shanghai offices by moving the sales operation to its local headquarters in Jiading, simplifying its organizational structure.

More significantly, Volvo Cars intends to reveal and begin production of the first two of six China-tailored vehicles around the middle of 2027. These models will be developed through closer cooperation with Geely and will use a Chinese technology stack alongside the latest advanced driver-assistance systems.

The objective is to create vehicles better suited to local customer expectations, where digital features, connected technology and rapid product development have become increasingly important purchasing considerations.

A more localized approach could help Volvo Cars compete more effectively with Chinese brands while reducing development and production costs through shared technologies and components.

US Operations Shift Toward Local Production and Plug-In Hybrids

In the United States, Volvo Cars is restructuring its commercial operations to improve responsiveness and accelerate decision-making. The company has divided the market into four regions, giving its teams a more focused approach to sales and customer demand.

It is also accelerating the production launch of long-range plug-in hybrid versions of the Volvo XC90 and XC60. European deliveries are expected to begin in 2026, with US deliveries following shortly afterward.

The company plans to begin localizing XC60 production at its Charleston, South Carolina, facility in the first quarter of 2027. Before the end of the decade, it also intends to localize production of a second, all-new vehicle offering multiple powertrain options.

Expanding US manufacturing could help Volvo Cars respond to tariff-related pressures and improve the competitiveness of its products in one of its most important markets. The increased emphasis on plug-in hybrids also gives the company an alternative for customers who are not yet ready to switch to fully electric vehicles.

Volvo Cars’ Turnaround Faces a Critical Test

Volvo Cars’ third-quarter 2026 results illustrate the difficulty of maintaining profitability during a period of intense competition, changing trade policies and a costly transition toward electric mobility.

The company has several potential sources of recovery, including strong European demand for its electric vehicles, the encouraging order performance of the EX60, a substantial pipeline of new models and deeper cooperation with Geely.

However, these opportunities must be balanced against the immediate need to restore positive cash flow, reduce fixed costs and improve margins in China and the United States.

The additional SEK 5 billion savings program, together with the planned workforce reductions and manufacturing changes, is intended to create a leaner business capable of operating profitably at lower sales volumes.

At the same time, the planned introduction of 13 new vehicles by 2030 demonstrates that Volvo Cars is not abandoning its product ambitions. Instead, it is attempting to reshape its operations while continuing to invest in models that can compete in an increasingly fragmented global market.

The success of the turnaround will depend on whether Volvo Cars can translate its new products and technology into sustainable sales growth without allowing development and manufacturing costs to undermine profitability.

For the Swedish automaker, 2027 will be a pivotal year. The launch of new regional models, the expansion of localized production and the expected realization of cost savings will provide an important indication of whether its strategy can deliver a lasting financial recovery.

Source: Volvo

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Mercedes-Benz Conducts World-First High-Speed Side-Impact Crash Test

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Mercedes-Benz has demonstrated the safety capabilities of its latest CLA by conducting what it describes as the world’s first public high-speed side-impact crash test involving two moving production vehicles. With both cars travelling at 56 km/h, the demanding real-world-inspired test put the passenger compartments, restraint systems and high-voltage battery of the all-electric Mercedes-Benz CLA under considerable pressure.

The test involved a 48-volt mild-hybrid Mercedes-Benz CLA Shooting Brake striking the driver’s side of an all-electric CLA. Both vehicles weighed more than two tonnes, and neither applied the brakes before impact. The result was a severe intersection-style collision designed to replicate one of the most challenging accident scenarios for modern passenger cars.

According to Mercedes-Benz, the passenger compartments of both vehicles remained intact, the crash-test dummies recorded readings below the relevant biomechanical injury thresholds, and the electric CLA’s high-voltage battery remained undamaged.

Mercedes-Benz CLA Crash Test Recreates a Severe Real-World Collision

Side-impact collisions present a particular challenge for automotive engineers. Unlike frontal crashes, where the front of a vehicle provides a relatively large deformation zone to absorb impact energy, the space available between the side of the car and its occupants is considerably more limited.

The challenge becomes even more significant when an electric vehicle is involved. In addition to protecting the occupants, engineers must ensure that the high-voltage battery, typically positioned within the vehicle’s underbody, remains protected during a severe impact.

Mercedes-Benz selected a collision speed of 56 km/h for each vehicle, describing it as being at the upper end of the speed range associated with real-world intersection accidents. The company also noted that the speed exceeds those typically encountered in city-centre traffic.

The decision to use two moving production vehicles rather than a stationary barrier or a conventional impact trolley was intended to provide a more representative demonstration of how the vehicles’ safety systems perform in a demanding collision.

Mercedes-Benz says approximately one-quarter of accidents resulting in personal injury involve side impacts, underlining the importance of developing vehicles capable of managing this type of collision.

CLA Occupant Protection and High-Voltage Battery Safety

The results of the Mercedes-Benz CLA crash test were encouraging. Both vehicles maintained intact passenger compartments, while measurements collected from eight crash-test dummies remained below the applicable biomechanical limits used to assess occupant protection.

The dummies represented four adults and four children, allowing engineers to evaluate the effectiveness of the vehicles’ safety systems across different occupant profiles.

Each dummy featured up to 150 measurement points, providing detailed data about the forces experienced during the collision. According to Mercedes-Benz, the results indicated a low risk of serious or life-threatening injuries for the occupants represented in the test.

The all-electric CLA’s high-voltage battery also remained intact and undamaged despite the direct side impact. This is an important result because battery protection is a central consideration in the development of electric vehicles, particularly in collisions that threaten the structural integrity of the underbody.

Jörg Burzer, Member of the Board of Management of Mercedes-Benz Group AG and Chief Technology Officer responsible for Development and Purchasing, said the test reflected the company’s ambition to develop vehicles with the highest possible safety standards.

Mercedes-Benz’s approach focuses on developing safety systems capable of responding to the types of accidents that occur on public roads, rather than relying exclusively on standardised laboratory scenarios.

Why Mercedes-Benz Went Beyond Standard Crash Tests

The Mercedes-Benz CLA test was not required by legislation or an established vehicle safety rating protocol. Conventional side-impact assessments typically use stationary barriers or specialised impact vehicles under controlled conditions.

Instead, Mercedes-Benz chose to stage a collision between two production vehicles travelling at speed, drawing on accident data collected through its own research programme.

The test forms part of the company’s broader Real-Life Safety philosophy, which aims to incorporate findings from actual road accidents into vehicle development requirements.

“If you want to build the safest vehicles, you need to incorporate insights from real-world accidents into your vehicle development requirements. We call this Real-Life Safety,” explained Paul Dick, Director of Vehicle Safety at Mercedes-Benz AG.

He added that the test involving two CLA models demonstrated how the company translates this philosophy into practical vehicle development.

The distinction is important: while a single crash test cannot establish that a vehicle is safer than every competitor or guarantee the same outcome in every real-world accident, it can demonstrate how a particular vehicle design performs under the specific conditions tested.

Mercedes-Benz has therefore positioned the exercise as a demonstration of its overall safety engineering rather than a replacement for established crash-test procedures.

Mercedes-Benz Uses Thousands of Crash Simulations to Develop New Cars

Mercedes-Benz has investigated and reconstructed real-world accidents since 1969. The company reports that its research teams in Germany, China and India have analysed approximately 6,000 accidents, with findings incorporated into vehicle body structures, restraint systems and internal safety requirements.

Physical crash testing is only one stage of the development process. Before a new Mercedes-Benz model reaches the crash-test laboratory, engineers conduct extensive computer simulations to predict how the vehicle will respond to different types of impacts.

According to the manufacturer, each new model undergoes approximately 15,000 crash simulations during development. Artificial intelligence is also being used to improve the accuracy of these predictions and support engineering decisions.

The company additionally conducts around 150 physical crash tests for each new model, going beyond minimum legal requirements as it works to meet its own safety targets.

This combination of real-world accident research, virtual testing and physical crash testing allows engineers to investigate a wider range of potential collision scenarios and refine the vehicle’s structural design and occupant protection systems before production begins.

For the CLA, the two-vehicle side-impact test provides another demonstration of how those development methods can be applied to a particularly demanding accident configuration.

Mercedes-Benz Rescue Intelligence Will Connect Crashed Cars With Emergency Services

Alongside the crash test, Mercedes-Benz unveiled Mercedes-Benz Rescue Intelligence, a system designed to improve the information available to emergency responders following an accident.

The manufacturer plans to begin a gradual rollout from 2027. The system is intended to establish a direct connection between vehicles involved in accidents and emergency services, allowing rescue teams to access relevant vehicle and crash information while travelling to the scene.

Depending on technical availability and the circumstances of the collision, the information may include:

  • The number of occupants inside the vehicle.
  • The status of airbags and seat belts.
  • Which doors are open.
  • The temperature of the high-voltage battery.
  • The condition of the vehicle’s high-voltage electrical system.

Access to this information could help firefighters and other emergency personnel assess the situation before reaching the accident scene. For example, knowing whether an electric vehicle’s high-voltage system has been compromised could help responders prepare the appropriate equipment and plan their approach.

Similarly, information about the number of occupants could help emergency teams anticipate the resources required to assist everyone involved.

The technology is particularly relevant as electric vehicles become more common on public roads and emergency services increasingly need vehicle-specific information to manage complex rescue operations.

Mercedes-Benz says the system is intended to help emergency responders make better-informed decisions sooner, potentially improving the efficiency of rescue operations when every second matters.

What the Mercedes-Benz CLA Crash Test Means for Vehicle Safety

The latest demonstration highlights two important aspects of modern automotive safety: protecting occupants during a collision and helping emergency services respond more effectively after one has occurred.

The structural performance of the two CLA models, the dummy measurements and the condition of the electric vehicle’s high-voltage battery provide useful evidence of how Mercedes-Benz’s safety systems performed in this particular test. However, the results should not be interpreted as a guarantee of injury-free outcomes in every collision or as an independent ranking against competing vehicles.

Mercedes-Benz’s broader safety strategy combines decades of accident research, thousands of virtual simulations, extensive physical testing and technologies intended to support post-crash rescue operations.

The planned introduction of Mercedes-Benz Rescue Intelligence from 2027 adds another layer to that approach by extending the focus beyond the moment of impact and towards the emergency response that follows.

As vehicle structures, driver assistance systems and electrified powertrains continue to evolve, the ability to protect occupants in severe side-impact collisions will remain a critical part of automotive engineering. Mercedes-Benz’s two-vehicle CLA crash test offers a striking demonstration of the company’s approach to that challenge.

Source: Mercedes-Benz

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