Volvo shifting EV manufacturing to Belgium to evade China tariffs, The Instances reviews By Reuters
(Reuters) – Volvo (OTC:) vehicles has began to shift manufacturing of Chinese language-made electrical autos to Belgium within the expectation that the European Union will drive forward with a crackdown on Beijing-subsidised imports, the Instances reported on Saturday.
Volvo, which is majority-owned by China’s Geely, was contemplating halting gross sales of Chinese language-built EVs sure for Europe if tariffs have been launched, the newspaper mentioned, citing firm insiders.
Nevertheless, the report added that shifting manufacturing of Volvo’s EX30 and EX90 fashions from China to Belgium is anticipated to negate the necessity for the corporate to take action and that the corporate insisted suspending gross sales of EVs made in China was not being thought-about.
The manufacturing of sure Volvo fashions sure for the UK is also moved to Belgium, Instances mentioned.
Volvo didn’t instantly reply to a Reuters request for remark exterior of normal enterprise hours.
The European Fee, which oversees commerce coverage within the 27-nation European Union, launched an investigation final yr into whether or not fully-electric vehicles manufactured in China have been receiving distortive subsidies and warranted further tariffs.
The anti-subsidy investigation, formally launched on Oct. 4, can last as long as 13 months. The Fee can impose provisional anti-subsidy duties 9 months after the beginning of the probe.
Relations between China and the EU have been strained by components together with Beijing’s nearer ties with Moscow after Russia’s invasion of Ukraine. The EU is searching for to scale back its reliance on the world’s second-largest economic system, significantly for supplies and merchandise wanted for its inexperienced transition.
