Volvo suddenly shifts EX30, EX90 production to Belgium to avoid China-made EV tariffs
What are the expected implications of the new tariffs on EVs made in China according to the European Commission?
The European Commission is expected to impose new tariffs on EV imports from China as trade tensions heat up. The implications of these new tariffs include:
- Increased costs: The new tariffs would raise the costs of EVs imported from China, making them less competitive compared to domestically-produced EVs or EVs imported from other countries.
- Reduced competition: The tariffs may lead to reduced competition in the EV market, as Chinese EV manufacturers may be priced out of the European market6.
- Trade tensions: The imposition of new tariffs could escalate trade tensions between the EU and China, potentially leading to a broader trade conflict.
- Protection of domestic industry: The tariffs are aimed at protecting European automakers and EV manufacturers from the competition posed by cheaper Chinese EVs, which are alleged to be subsidized by the Chinese government.
- Impact on consumers: The new tariffs may lead to higher prices for European consumers looking to purchase EVs, potentially slowing down the adoption of electric vehicles in the region.
Overall, the new tariffs on EVs made in China are expected to have a significant impact on the European EV market, potentially affecting consumer choice, market competition, and trade relations with China.
What specific models of electric vehicles is Volvo planning to move production for to Belgium?
Volvo is planning to move production of the new Volvo EX30 and EX90 electric vehicles to Belgium. This decision is aimed at avoiding expected tariffs on electric vehicles made in China. The move was originally planned to begin in 2025, but it seems that the shift might be happening ahead of schedule. In addition to the EX30 and EX90, Volvo may also move assembly of some models going to the UK, according to anonymous sources cited in the report.
Why is Volvo accelerating the production of the EX30 and EX90 models in Belgium ahead of the initially planned 2025 timeline?
Volvo is reportedly accelerating the production of the EX30 and EX90 models in Belgium ahead of the initially planned 2025 timeline due to expected tariffs on electric vehicles made in China3. The European Union is investigating Chinese electric vehicle subsidies, and new tariffs on EV imports from China could be imposed as early as this week. Volvo is one of the most exposed automakers to these potential tariffs, and moving production to Belgium would help the company avoid these additional costs. Furthermore, with nearly three-quarters of Volvo's fully electric vehicles sold this year being in Europe, having local production would speed up deliveries and cut costs.