Avoid EU Tariffs, Volvo Chooses Belgium For EV Production

Volvo EX90. (Doc. Volvo Cars)

JAKARTA - Relations between China and the European Union have not been doing well since China's close ties to Russia following the Ukrainian invasion. Since then, the European Union has sought to reduce its dependence on the world's second-largest economy, especially for materials and products needed for environmentally friendly transitions.

Last year, reported by Reuters on June 10, the European Commission, which oversees trade policies in the 27-member European Union, has launched an investigation to see if full electric cars (EVs) produced in China receive unreasonable subsidies and need to be subject to additional tariffs.

The anti-subsidized investigation, which was officially launched on October 4, lasted up to 13 months. The Commission can impose temporary anti-subsidized duties nine months after the start of the investigation.

As a result, in anticipation of the European Union which will take firm action against imports of electric cars that have received subsidies from the Chinese government, The Times reported on Saturday, June 9, Volvo Cars, most of whose shares are owned by Geely from China, began moving production of electric cars made in China to Belgium.

Volvo previously considered stopping sales of Chinese-made electric cars aimed at Europe if tariffs were imposed. This was conveyed by an internal company source.

With this transfer, especially the production of EX30 and EX90 Volvo models from China to Belgium, it is hoped that Volvo will continue to sell in Europe. The production of several Volvo models marketed in Great Britain is also likely to be moved to Belgium, the Times said.

Previously, it was reported that VOI, Europe was still the largest market for Volvo by obtaining sales of 33,252 units last May (up 27 percent). Sales of the electrification vehicle segment also increased rapidly in Europe by 34 percent or sales acquired 22,028 units.