(Reuters) – Volvo Cars has started shifting production of its Chinese-made electric cars to Belgium in anticipation of a European Union crackdown on subsidised imports from Beijing, the Times newspaper reported on Saturday.
Volvo, which is majority owned by China’s Geely Automobile, is considering stopping sales of Chinese-made electric cars to Europe if tariffs are imposed, the paper reported, citing company sources.
However, the report added that the move of production of Volvo’s EX30 and EX90 models from China to Belgium is expected to eliminate the need for the company to do so, with the automaker insisting that a halt to sales of Chinese-made EVs is no longer under consideration.
Production of some Volvo models for the UK could also be moved to Belgium, according to The Times.
Volvo did not immediately respond to a Reuters request for comment outside regular business hours.
The European Commission, which oversees trade policy for the 27-nation EU, launched an investigation last year into whether fully electric cars made in China received perverse subsidies, justifying additional tariffs.
The anti-subsidy investigation, which formally began on October 4, could last up to 13 months. The Commission can impose provisional anti-subsidy duties nine months after the investigation begins.
Relations between China and the EU have been strained by factors including Beijing’s growing ties with Moscow after Russia’s invasion of Ukraine, as the EU seeks to reduce its dependence on the world’s second-largest economy, particularly for materials and products needed for a green transition.
(Reporting by Janavi Nidumolu in Bengaluru; Editing by Kim Coghill)
