Brussels (Brussels Morning) – Volvo shifts Chinese-made electric vehicle production to Belgium in response to anticipated EU tariffs on Chinese imports, aiming to avoid higher import taxes and align production with European market demands.
Volvo Car has begun to shift manufacturing of Chinese-made electric vehicles (EVs) to Belgium as the European Union readies to impose tariffs on China-made EVs. European Union’s anticipated import tariffs on Chinese-made electric vehicles have reportedly initiated Volvo to shift its production of some of its EV models from China to Belgium.
According to The Sunday Times’ unnamed references, Volvo is pushing its EX30 and EX90 models manufacturing from China to Belgium. The newspaper also conveyed that the automaker may resettle the manufacturing of some models bound for the UK to Belgium.
How Will EU Tariffs Impact Chinese EV Imports?
Among Western automakers, China’s Geely-owned luxury car business Volvo is considered the most weak to tariffs. Trade pressures between the EU and China have resulted in a storm of anti-dumping investigations against Beijing, which is blamed for providing unfair subsidies.
The EU is also expected to inform Chinese manufacturers of electric vehicles whether or not it will involve temporary tariffs on July 4 that would increase import taxes above the existing 10% level.
If executed, the tariff schedule would consist of three levels: individual rates for the sample of companies the EU was examining, including BYD, the world’s largest seller of EVs; an average tariff for businesses that responded to questions but were not thoroughly probed; and a residual tariff for companies that were not investigated.
Why Is Volvo Rejecting Speculation About Tariffs?
In rejecting the Times’ report, Volvo stated it is too soon to speculate on the importance of the inquiry’s conclusion or any potential actions. A spokesperson informed Bloomberg that the company’s choice to complete the EX30 in Ghent, Belgium, underlines its goal to build vehicles where they sell the most. Volvo also stated that the additional capacity in Belgium had previously been demonstrated.
According to Xinhua, which quoted remarks made by China’s Commerce Minister Wang Wentao, the charges of dishonest competition against China are totally without value. Wang expressed his passion for the EU to give up trade protectionism and instead prioritize discussion and collaboration.
What Concerns Does the EU Have About Chinese Trade Practices?
Ursula von der Leyen, the chairwoman of the European Commission, reportedly warned that the world could not immerse China’s excess production after fulfilling with Chinese President Xi Jinping in Paris last month. She commented that the EU will not waver from defending its sectors and employment within the unit. Allegations that China was stopping domestic consumer demand via overcapacity and watering the EU with cheaper EVs led to the takeoff of the anti-subsidy investigation in October last year.
It is one of the more than a dozen examinations being conducted by the EU into Chinese state assistance. One inquiry concentrates on exports of heat pumps, solar panels, and wind turbines, which the energy sector claims are 50% less expensive than what the EU charges.
