Volvo Cars has started moving production of electric vehicles manufactured in China to Belgium, as the European Union is expected to continue its crackdown on Beijing’s subsidies for imported cars.
According to a report by The New York Times on Saturday (June 8), Volvo is considering halting sales of electric vehicles manufactured in China to Europe if tariffs are imposed. However, the report also mentioned that Volvo’s decision to relocate production of the EX30 and EX90 models from China to Belgium may not be necessary, and the company insists it is not considering suspending sales of electric vehicles made in China.
The New York Times further reported that production of certain Volvo models destined for the UK may also be shifted to Belgium.
Volvo did not immediately respond to requests for comments outside of normal working hours by The New York Times.
The European Commission, responsible for overseeing the trade policies of 27 EU countries, initiated an investigation last year to examine whether Chinese-made pure electric cars have received distorting subsidies and require additional tariffs.
The anti-subsidy investigation officially began on October 4, with a maximum duration of 13 months. The European Commission may impose provisional anti-subsidy duties nine months after the start of the investigation.
Tensions between China and the EU have escalated due to factors such as Beijing’s closer ties to Moscow following Russia’s invasion of Ukraine. The EU is seeking to reduce its reliance on China, particularly for materials and products needed for its green transition.