Volvo has started to shift production of Chinese-made electric vehicles to Belgium in the expectation the EU will drive ahead with a crackdown on Beijing-subsidised imports, The Times reported on Saturday.
Volvo, which is majority-owned by China's Geely, was considering halting sales of Chinese-built EVs bound for Europe if tariffs were introduced, the newspaper said, citing company insiders.
However, the report added shifting production of Volvo's EX30 and EX90 models from China to Belgium is expected to negate the need for the company to do so, and the company insisted suspending sales of EVs made in China was no longer being considered.
The manufacturing of some Volvo models bound for the UK could also be moved to Belgium, The Times said.
Volvo did not immediately respond to a Reuters request for comment outside regular business hours.
The European Commission, which oversees trade policy in the 27-nation EU, launched an investigation last year into whether fully-electric cars manufactured in China were receiving distortive subsidies and warranted extra tariffs.
The anti-subsidy investigation, officially launched on October 4, can last up to 13 months. The commission can impose provisional anti-subsidy duties nine months after the start of the probe.
Relations between China and the EU have been strained by factors including Beijing's closer ties with Moscow after Russia's invasion of Ukraine. The EU is seeking to reduce its reliance on the world's second-largest economy, particularly for materials and products needed for its green transition.
Volvo shifting EV production to Belgium to avoid China tariffs: The Times
Image: Supplied
Volvo has started to shift production of Chinese-made electric vehicles to Belgium in the expectation the EU will drive ahead with a crackdown on Beijing-subsidised imports, The Times reported on Saturday.
Volvo, which is majority-owned by China's Geely, was considering halting sales of Chinese-built EVs bound for Europe if tariffs were introduced, the newspaper said, citing company insiders.
However, the report added shifting production of Volvo's EX30 and EX90 models from China to Belgium is expected to negate the need for the company to do so, and the company insisted suspending sales of EVs made in China was no longer being considered.
The manufacturing of some Volvo models bound for the UK could also be moved to Belgium, The Times said.
Volvo did not immediately respond to a Reuters request for comment outside regular business hours.
The European Commission, which oversees trade policy in the 27-nation EU, launched an investigation last year into whether fully-electric cars manufactured in China were receiving distortive subsidies and warranted extra tariffs.
The anti-subsidy investigation, officially launched on October 4, can last up to 13 months. The commission can impose provisional anti-subsidy duties nine months after the start of the probe.
Relations between China and the EU have been strained by factors including Beijing's closer ties with Moscow after Russia's invasion of Ukraine. The EU is seeking to reduce its reliance on the world's second-largest economy, particularly for materials and products needed for its green transition.
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