By T. Jayani, JadeTimes News
Volvo Cars (VOLCARb.ST) has begun relocating the production of its Chinese manufactured electric vehicles (EVs) to Belgium, anticipating the European Union's impending crackdown on imports subsidized by Beijing, according to a report by the Times on Saturday. Majority owned by China's Geely, Volvo had been contemplating halting sales of Chinese built EVs to Europe if tariffs were imposed, the report noted, citing company insiders. However, the shift in production of Volvo's EX30 and EX90 models from China to Belgium is expected to eliminate the need for such a measure, and the company has stated that suspending sales of China made EVs is no longer under consideration.
The Times also indicated that production of certain Volvo models destined for the United Kingdom could be transferred to Belgium. Volvo did not immediately respond to a Reuters request for comment outside regular business hours.
The European Commission, which manages trade policy for the 27 nation EU, initiated an investigation last year to determine if fully electric vehicles manufactured in China were benefiting from unfair subsidies and should be subjected to additional tariffs. This anti subsidy investigation, officially launched on October 4, can last up to 13 months, with the possibility of imposing provisional anti subsidy duties within nine months of the probe's commencement.
Tensions between China and the EU have been exacerbated by China's closer relationship with Moscow following Russia's invasion of Ukraine. The EU is striving to lessen its dependency on China, particularly for essential materials and products critical to its green transition.