Volvo Car AB has begun moving production of Chinese-made electric vehicles to Belgium as the European Union prepares to impose tariffs on Chinese-made electric cars, the Times reports.
In addition to moving production of the Volvo EX30 and EX90 models to Belgium, the automaker may also move the assembly of some Volvo models destined for the UK, the report said, citing unidentified people. Volvo, owned by Zhejiang Geely Holding Group Co., is considered the most vulnerable among Western automakers to potential tariffs, according to the Times.
Trade disputes between the EU and China have led to a flurry of anti-dumping investigations against Beijing amid allegations of unfair subsidies. The EU is expected to tell electric vehicle makers in China as early as this week whether it will introduce temporary tariffs from July 4 that would raise import duties above the current level of 10%.
Volvo Car denied the Times report, saying it was “premature to speculate on the implications of what this investigation will lead to or any potential action.”
“The decision to also build the EX30 in Ghent reflects our commitment to build our cars where we sell as many of them as possible,” a spokesman said in an emailed statement. According to the company, additional capacity was previously announced in Belgium.
Last week, China accused the EU of trying to “suppress” Chinese companies and said it would take action to protect its interests.
Allegations of unfair competition against China are completely unfounded, Xinhua News Agency reported Sunday, citing previous comments by Commerce Minister Wang Wentao. Wang expressed hope that the EU will abandon trade protectionism and return to the path of dialogue and cooperation, Xinhua reported.
In a separate dispute, Chinese dairy companies are preparing to ask Beijing to launch an anti-dumping investigation into imports from the EU, the Global Times reported yesterday, without giving details.