Volvo is shifting EV production to Belgium from China
The Volvo EX90 was unveiled earlier this year. Some of the carmaker’s models are made in China
Volvo Car AB has commenced the relocation of its electric vehicle (EV) production from China to Belgium, in response to impending European Union tariffs on China-made EVs, according to a report by The Times.
Relocation aims to mitigate impact of anticipated E.U. tariffs on China-made EVs
The Swedish automaker, owned by Zhejiang Geely Holding Group Co., is moving the manufacturing of its EX30 and EX90 models to Belgium. Additionally, the company is considering shifting the assembly of some Volvo models destined for the U.K. to Belgium.
Volvo is seen as the most vulnerable among Western car manufacturers to potential E.U. tariffs. Trade tensions between the E.U. and China have escalated, leading to multiple anti-dumping investigations against Beijing over allegations of unfair subsidies. The E.U. is expected to announce as early as next week whether it will impose provisional tariffs from July 4, raising import duties above the current 10% level.
Last week, China accused the EU of attempting to “suppress” Chinese companies and vowed to take measures to protect its interests. According to Xinhua News Agency, Commerce Minister Wang Wentao criticized the allegations of unfair competition as baseless and urged the EU to abandon trade protectionism and return to dialogue and cooperation.
