Manufacturing of Chinese-made electric vehicles by Volvo Car AB is being shifted to Belgium amidst the European Union’s plans to impose tariffs on China-made EVs, as reported by the Times.
Volvo may transfer production of its EX30 and EX90 models to Belgium, along with possibly moving assembly of some Volvo models intended for the UK, according to the report which cited unidentified sources. The Times noted that Volvo, owned by Zhejiang Geely Holding Group Co., is considered to be at high risk among western automakers due to potential tariffs.
Trade tensions between the EU and China have resulted in multiple anti-dumping investigations against Beijing over allegations of unfair subsidies. The EU is expected to inform EV manufacturers in China this week regarding possible provisional tariffs starting from July 4, which would increase import duties beyond the current 10% level.
Volvo Car refuted the Times’ report, stating that it is premature to speculate on the implications of the ongoing investigation or any potential measures.
“The decision to also build the EX30 in Ghent reflects our ambition to build our cars where we sell them as much as possible,” a spokesperson mentioned in an email statement. The company had previously disclosed the additional capacity in Belgium.
China recently accused the EU of trying to “suppress” Chinese companies and vowed to take action to protect its interests.
Commerce Minister Wang Wentao dismissed the accusations of unfair competition against China as baseless, as reported by Xinhua News Agency. Wang expressed hope for the EU to abandon trade protectionism and resume dialog and cooperation.
In a separate development, Chinese dairy companies are gearing up to request an anti-dumping investigation against imports from the EU, as reported by the Global Times without specifics.
