Volvo Cars has begun shifting manufacturing of Chinese-made electric cars to Belgium, as the European Union prepares to impose tariffs on electric cars made in China, The Times reported.
In addition to moving production of the Volvo EX30 and EX90 models to Belgium, the automaker may also move assembly of some Volvo models destined for the UK, the report said, citing unidentified people. The newspaper said that Volvo, owned by Zhejiang Geely Holding Group, is considered the most exposed among Western automakers to potential customs tariffs.
Trade frictions between the European Union and China have led to a series of anti-dumping investigations against Beijing amid allegations of unfair subsidies. The European Union is expected to tell China's electric vehicle makers as early as this week whether it will impose temporary tariffs from July 4 that would boost import duties above the current level of 10%.
Volvo Cars denied the Times report, saying: “It is too early to speculate on the implications of this investigation, or any potential actions.”
“The decision to also build the EX30 in Ghent reflects our ambition to build our cars where we sell them the most,” a company spokesperson said in an emailed statement. The additional capacity was previously disclosed in Belgium, according to the company.
Last week, China accused the European Union of working to “suppress” Chinese companies and said it would take measures to protect its interests.
Xinhua News Agency said that the accusations of unfair competition against China are completely unfounded mentioned on Sunday, citing earlier comments by Commerce Minister Wang Wentao. Xinhua quoted Wang as saying that he hopes the European Union will abandon trade protectionism and return to the path of dialogue and cooperation.
In a separate dispute, Chinese dairy companies are preparing to ask Beijing to open an anti-dumping investigation against imports from the European Union, the Global Times reported yesterday, without providing details.