Volvo Car AB has begun shifting production of Chinese electric vehicles to Belgium as the European Union prepares to impose tariffs on Chinese EVs, the Times reported.
In addition to moving production of Volvo’s EX30 and EX90 models to Belgium, the company may also move assembly of some Volvo models to the UK, unidentified sources reported. Volvo, owned by Zhejiang Geely Holding Group Co., appears to be the most exposed to potential tariffs among Western automakers, the Times said.
Trade friction between the EU and China has led to China being investigated for anti-dumping along with allegations of unfair subsidies. The EU is expected to inform electric vehicle manufacturers in China early this week whether it will impose provisional tariffs that would raise import tariffs to more than the current 10% as early as July 4.
Volvo Cars denied the Times report and said, “It is premature to speculate what the conclusion of this investigation will be or what potential actions may be taken.”
“The decision to build the EX30 in Ghent reflects our ambition to build a car that sells as many as possible,” a spokesperson said in an emailed statement. Additional production capacity in Belgium was previously disclosed, according to the company.
Last week, China accused the EU of “oppressing” Chinese companies and said it would take action to protect its interests.
Claims of unfair competition against China are completely unfounded, Xinhua News Agency reported It cited previous comments by Commerce Minister Wang Wentao on Sunday. Wang said he hoped the EU would abandon trade protectionism and return to the path of dialogue and cooperation, Xinhua News Agency reported.
In a separate dispute, Chinese dairy companies are preparing to ask China to open anti-dumping investigations into EU imports, the Global Times reported yesterday, without providing further details.
