(Reuters) – Volvo cars has begun moving production of Chinese-made electric vehicles to Belgium in anticipation of the European Union pushing ahead with its crackdown on imports subsidized by Beijing, the Times reported on Saturday.
Volvo, which is majority-owned by China’s Geely, was considering suspending sales of Chinese-made electric vehicles bound for Europe if tariffs were introduced, the newspaper said, citing company insiders.
However, the report added that the transfer of production of Volvo’s EX30 and EX90 models from China to Belgium is expected to negate the need for the company to do so and that the company insisted that the suspension of sales of Chinese-made EVs was no longer in place. to be considered.
Manufacturing of certain UK-bound Volvo models could also be moved to Belgium, the Times said.
Volvo did not immediately respond to a Reuters request for comment outside normal business hours.
The European Commission, which oversees trade policy in the 27-nation European Union, launched an investigation last year into whether all-electric cars made in China were receiving distortive subsidies and warranted additional tariffs.
The anti-subsidy investigation, officially launched on October 4, could last up to 13 months. The Commission may impose provisional anti-subsidy duties nine months after the start of the investigation.
Relations between China and the EU have been strained by factors including Beijing’s closer ties with Moscow following Russia’s invasion of Ukraine. The EU seeks to reduce its dependence on the world’s second largest economy, especially for the materials and products needed for its ecological transition.
(Reporting by Jahnavi Nidumolu in Bengaluru; Editing by Kim Coghill)
