Volvo Car AB has begun moving production of Chinese electric vehicles to Belgium because the European Union prepares to impose tariffs on Chinese-made electric vehicles, the Times reported.
In addition to shifting production of Volvo’s EX30 and EX90 models to Belgium, the automaker may additionally relocate assembly of some Volvo models destined for the UK, the report said, citing unnamed people. Volvo, which is owned by Zhejiang Geely Holding Group Co., is taken into account the Western automaker most affected by the potential tariffs, in keeping with the Times.
Trade tensions between the EU and China have led to a spate of anti-dumping investigations against Beijing, amid accusations that the country offers unfair subsidies. The EU is anticipated to inform Chinese electric automobile makers later this week whether it is going to impose provisional tariffs from July 4 that may raise import duties above the present 10% level.
Volvo Car denied the Times report, saying: “It is premature to speculate on the impact of the findings of this investigation or any possible action.”
“The decision to also build the EX30 in Ghent reflects our ambition to build our cars where we sell them as often as possible,” a spokesman said in an emailed statement. The additional capability in Belgium had already been announced previously, the corporate said.
China last week accused the EU of attempting to “suppress” Chinese firms and said it might take measures to guard its interests.
The allegations of unfair competition against China are completely unfounded, Xinhua News Agency reported Sunday, citing earlier remarks by Commerce Minister Wang Wentao. Wang expressed hope that the EU would abandon trade protectionism and return to the trail of dialogue and cooperation, Xinhua reported.
In one other dispute, Chinese dairy firms are preparing to ask Beijing to launch an anti-dumping investigation into imports from the EU, the Global Times reported yesterday, without giving details.
