Volvo Cars, a Swedish automotive company owned by Chinese company Geely, has made the decision to move production of electric vehicles from China to Belgium in anticipation of potential import duties that the European Union may introduce. This comes after the European Commission launched an investigation into possible subsidies for electric vehicle manufacturers in China, which could result in tariffs being imposed.
According to a report by London’s The Times, Volvo plans to shift production of its EX30 and EX90 models to Belgium in order to avoid potential tariffs and prevent the suspension of sales in Europe. The company is also considering moving production of some models intended for the British market to Belgium to address the issue.
The European Parliament report from October highlighted that Chinese electric vehicle manufacturers like BYD, Nio, and Xpeng only export a small number of cars to the EU. The majority of Chinese imports into the EU are vehicles produced by established companies from the EU and the USA in China. The European Commission will conclude its investigation within 13 months, with the possibility of introducing temporary customs duties within nine months.
Volvo has yet to officially comment on The Times’ report. However, the decision to move production of electric vehicles to Belgium indicates the company’s proactive approach to potential tariffs and regulatory changes in the EU market.
