Volvo Car (VOLCAR-B.ST) is reportedly shifting its China-based electric vehicle (EV) production operations to Belgium to avoid the European Union’s (EU) possible taxation on Chinese products.
Volvo Moving EV Production to Belgium to Dodge Import Tariffs
According to reports, the Swedish automobile maker contemplated stopping its Chinese-manufactured EX30 and EX90 EV sales in Europe should the rumoured EU tariffs be realised. Relocating EV production to Belgium would negate this move. Reuters indicated that the company “insisted” that it was no longer considering the suspension of sales.
The European Commission, the European Union’s politically independent executive function, is busy investigating whether Chinese-manufactured EVs received warped subsidies, which would justify raised import taxation.
The commission launched this probe in October 2024 and indicated it may take over a year to complete. Based on Reuters information, this authority can “impose provisional anti-subsidy duties nine months after the start of the probe”.
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
Geely Automobile Holdings Limited (GELYF), a car maker that chiefly operates in China, owns the majority share of Volvo. China-EU associations became strained by issues such as China’s continued bonds with Russia after the Ukraine conflict. The EU also wants to decrease its dependence on Chinese goods for its sustainability drives.
In April 2024, Volvo reported an 8% increase in its Q1 2024 operating profit. For this period, the company’s sales spiked by 12% and, according to PR Newswire, recorded an all-time high sales record for March 2024. Strong performances in both the US and Europe contributed to these positive financials.
The EX30 won the 2024 World Urban Car of the Year award and the Red Dot ‘Best of the Best’ Design Award.
