Volvo Cars has begun moving parts of its Chinese electric vehicle production to Gent in Belgium, according to The Times. This is happening at the same time as the EU is investigating new import tariffs on electric vehicles from China.
Sources told The Times that, in addition to EX30 production, production of certain models intended for the British market may also be relocated to Belgium.
"We cannot confirm that the reason we will also start producing EX30 in Belgium has anything to do with the introduction of tariffs in the EU. It's too early to speculate on the consequences of this investigation or any potential measures," writes Kristin Boldemann Wester, global PR manager for Volvo, in an email to TT.
Volvo Cars, owned by Chinese Geely, is estimated by analysts to be the Western automaker most severely affected by higher Chinese tariffs.
"The decision to also build EX30 in Gent reflects our ambition to build our cars where we sell them in as large a proportion as possible," writes Kristin Boldemann Wester.
In a budding trade war, the EU is investigating a range of products from China, including suspicions of price dumping and unfair state subsidies. Much of it concerns green technology such as electric vehicles, trains, and equipment for solar energy installations.
A statement from the EU on new tariffs could come this week and, if so, would take effect at the beginning of July.
The US tightened import tariffs on strategically important goods from China in May. For example, the tariff on electric vehicles was increased from 25 to 100 percent.
Earlier this week, Volvo announced that 72,000 EX30s worldwide are being recalled due to a fault on the speedometer screen.
