Volvo Cars, a Swedish company owned by the Chinese Geely, has decided to move the production of electric vehicles from China to Belgium in response to potential import duties due to an investigation into possible subsidies for Chinese manufacturers of electric vehicles. This decision comes as a way to avoid any future tariffs that may be imposed by the European Commission.
The report notes that transferring production of the EX30 and EX90 models to Belgium would resolve the issue of potential tariffs and prevent Volvo from having to consider suspending sales in Europe. There is speculation that Volvo may also relocate the production of certain models intended for the British market to Belgium as well. Despite several requests for comments, Volvo has not yet responded to inquiries regarding the reported production shift.
The European Commission initiated an investigation into possible subsidies for Chinese electric vehicle manufacturers in October, citing a significant increase in their market share in the EU. The report suggests that while Chinese companies like BYD, Nio, and Xpeng export only a small number of cars, the majority of Chinese imports into the EU are actually vehicles produced by established companies from the EU and the USA in China.
The European Commission is expected to conclude its investigation within 13 months, with the option to implement temporary customs duties within nine months. The outcome of this investigation could have significant implications for the future of electric vehicle production in Europe and the relationship between Chinese manufacturers and the EU market.
