Volvo moves electric car production from China to Belgium as EU targets Beijing with tariffs

3 Min Read

GettyImages 2149540034 e1717973571607

Volvo Car AB has started moving production of Chinese-made electric vehicles to Belgium as the European Union prepares to impose tariffs on Chinese-made electric vehicles, the Times reported.

In addition to transferring production of Volvo’s EX30 and EX90 models to Belgium, the automaker may also move the assembly of some Volvo models to Britain, the report said, citing unidentified people. Volvo, owned by Zhejiang Geely Holding Group Co., is seen as the most exposed Western automaker to the potential tariffs, the Times said.

Trade frictions between the EU and China have led to a barrage of anti-dumping investigations against Beijing, amid accusations of unfair subsidies. The EU is expected to tell EV manufacturers in China as early as this week whether it will impose provisional tariffs from July 4 that would raise import duties above the current level of 10%.

Volvo Car denied the Times report, saying: “It is premature to speculate on the implications of what this investigation will reveal, or on possible actions.”

“The decision to also build the EX30 in Ghent reflects our ambition to build our cars as much as possible where we sell them,” a spokesperson said in an emailed statement. According to the company, the additional capacity in Belgium had been announced earlier.

China last week accused the EU of “suppressing” Chinese companies and said it will take action to safeguard its interests.

The accusations of unfair competition against China are completely unfounded, according to Xinhua news agency reported Sunday, citing earlier comments by Trade Minister Wang Wentao. Wang said he hoped the EU would abandon trade protectionism and return to the path of dialogue and cooperation, Xinhua said.

See also  ByteDance: between a rock and a digital hard place

In a separate dispute, Chinese dairy companies are preparing to ask Beijing to open an anti-dumping investigation into imports from the EU, the Global Times reported yesterday, without giving details.

Subscribe to the Eye on AI newsletter and stay informed about how AI is shaping the future of business. Free sign-up.
Share This Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *