Volvo Car AB has started shifting manufacturing of electric vehicles made in China to Belgium as the European Union prepares to impose tariffs on electric vehicles made in China, the Times reported.
In addition to moving production of Volvo EX30 and EX90 models to Belgium, the automaker could also shift assembly of some Volvo models to the United Kingdom, the report said, citing unidentified people. Volvo, which is owned by Zhejiang Geely Holding Group Co., is considered the Western automaker most exposed to potential tariffs, the Times said.
Trade frictions between the EU and China have led to a series of anti-dumping investigations against Beijing amid allegations of unfair subsidies. The EU is expected to tell electric vehicle makers in China as early as this week whether it will impose temporary tariffs from July 4 that would raise import duties above the current level of 10%.
Volvo Car denied the Times report, saying “it is premature to speculate on the implications of this investigation’s findings, or on potential action.”
“The decision to also build the EX30 in Ghent reflects our ambition to build our cars where we sell them as much as possible,” a spokesperson said in an emailed statement. The additional capacity in Belgium had previously been disclosed, according to the company.
Last week, China accused the EU of seeking to “crack down” on Chinese companies and said it would take measures to safeguard its interests.
Accusations of unfair competition against China are completely unfounded, according to the Xinhua news agency. reported Sunday, citing earlier comments from Commerce Minister Wang Wentao. Wang said he hoped the EU would abandon trade protectionism and return to the path of dialogue and cooperation, Xinhua reported.
In another dispute, Chinese dairy companies are preparing to ask Beijing to open an anti-dumping investigation into imports from the EU, the Global Times reported yesterday, without providing details.
