The Swedish Volvo Cars has started to move the production of electric vehicles from China to Belgium, estimating that the EU will introduce import duties, writes London’s The Times. Volvo is owned by the Chinese Geely and produces electric vehicles in China. Since the European Commission has opened an investigation into possible subsidies that could result in tariffs, the company has begun to think about suspending sales in Europe, the London newspaper reported, citing company sources.
Moving production of the EX30 and EX90 models from China to Belgium would solve the problem of possible tariffs and remove the option of suspending sales of the vehicles from the agenda, The Times explained in a report published on Saturday. The company could also move the production of some models intended for the British market to Belgium, the paper adds. Volvo did not immediately respond to Reuters’ request for comment on the report.
The European Commission opened an investigation into possible subsidies to Chinese manufacturers of electric vehicles at the beginning of October, stating that their share in the European market had jumped from one to eight percent and that by next could reach 15 percent.
– Several sources emphasized that Chinese companies (for example, BYD, Nio and Xpeng) still export a relatively small number of cars and that two-thirds of Chinese imports into the EU are vehicles that established companies from the EU and the USA produce in China – it is stated in the report of the European Parliament from October.
The commission must conclude the investigation within 13 months. At the latest within nine months from the beginning of the investigation, they can introduce temporary customs duties.