Automotive Volvo

Published on June 10th, 2024 | by Sounder Rajen


Volvo Reportedly Shifting EV Production To Belgium To Avoid China Tariffs

Well, it seems like Volvo is more of a Chinese company rather than a European one now

According to a report from the Times on Saturday, Volvo Cars, predominantly owned by China’s Geely, has initiated a significant strategic move, transitioning the production of its Chinese-made electric vehicles (EVs) to Belgium. This proactive shift is driven by Volvo’s anticipation of an impending crackdown by the European Union (EU) on imports subsidised by Beijing. 


The company is reportedly mulling over the possibility of ceasing the sale of Chinese-built EVs destined for Europe if tariffs are imposed, as per sources within the company cited by the newspaper. However, Volvo appears to have found a solution that could potentially circumvent the need to suspend sales of EVs manufactured in China. 

Moreover, the decision to relocate the production of Volvo’s EX30 and EX90 models from China to Belgium is seen as a preemptive measure to mitigate the impact of potential tariffs. The company has also purportedly dismissed any plans to halt the sale of EVs produced in China. Looks like Volvo is more of a China company than a European one like it was traditionally.


In addition to the relocation of EV production, there are indications that certain Volvo models destined for the United Kingdom could also be shifted to Belgium, as reported by the Times. At the time of reporting, Volvo had not responded to Reuters’ request for comment outside regular business hours, leaving the specifics of their strategy open to interpretation.

On top of that, the European Commission, responsible for trade policy across the 27-nation EU, launched an investigation last year to scrutinise whether fully-electric cars originating from China were benefiting from distorting subsidies, warranting potential additional tariffs. 

The formal anti-subsidy investigation, commenced on 4 October, can extend up to 13 months, with provisional anti-subsidy duties feasible nine months post-launch. On a side note, since Geely is also a partner to our own Proton, will Proton also become a China company soon? Let’s find out.

What’s more, the strained relations between China and the EU, exacerbated by various factors including Beijing’s alignment with Moscow following Russia’s invasion of Ukraine, underscore the EU’s endeavours to diversify its economic dependencies, particularly with regards to materials and products essential for its green transition. 

We got all this from Reuters and their full article is linked here. Thank you Reuters for the information and images.

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