The European Union is currently investigating Beijing for anti-dumping violations and allegations of unfair subsidies. These investigations may lead to an increased tariff environment for Chinese-produced goods, including electric vehicles. In anticipation of these changes, Volvo has decided to move the production of key models back to Europe, the Times said.
The upcoming tariff changes, expected to be announced this week and effective from July 4, might see an increase from the current level of 10%.
Volvo Car denied the Times’ report, saying “it’s premature to speculate on the implications of what this investigation will conclude, or any potential measures.”
Volvo had expressed its intention to align its production locations with key markets. A company spokesperson stated, "The decision to also build the EX30 in Ghent reflects our ambition to build our cars where we sell them as much as possible." The additional capacity in Belgium had been previously disclosed, according to the company.
Volvo Car AB is a subsidiary of Zhejiang Geely Holding Group Co., and has traditionally had significant manufacturing footprints across various international locations including China.
Source: Bloomberg
