The European Commission is currently investigating whether to impose higher tariffs on electric car imports from China due to government subsidies that may be deemed illegal. Despite claims made by sources like The Times and Bloomberg, Volvo has stated that production plans are not changing based on these investigations.
Volvo currently produces cars in Sweden, Ghent, the United States, and China. The company is owned by Geely, a Chinese car manufacturer, and would be significantly impacted by any increase in tariffs on imported cars from China. While it is true that the EX30 electric SUV is expected to be produced in Ghent as well as in China, this decision was made prior to the European Commission’s investigation.
In 2023, Volvo announced plans to introduce the EX30 to Ghent in 2025 as part of a broader strategy to build cars in the markets where they are sold. This move was not motivated by tariff changes but was instead a pre-existing production plan for the company. The decision aligns with Volvo’s commitment to sustainability and market-specific production strategies.
Reports suggesting that Volvo plans to shift production from China to Ghent in response to European import tariffs on Chinese cars are therefore incorrect.