(Reuters) – Volvo Vehicles has began transferring manufacturing of Chinese language-made electrical vehicles to Belgium, The Instances reported on Saturday, because the European Union is predicted to proceed its crackdown on imported vehicles sponsored by Beijing.
China’s Geely-controlled Volvo is contemplating stopping gross sales of Chinese language-made electrical vehicles to Europe if tariffs are imposed, the newspaper mentioned, citing firm insiders.
Nonetheless, the report provides that transferring manufacturing of Volvo’s EX30 and EX90 fashions from China to Belgium is predicted to remove the necessity for the corporate to take action, and the corporate insists it’s not contemplating suspending gross sales of Chinese language-made electrical vehicles.
The Instances mentioned manufacturing of some Volvo fashions destined for the UK may additionally be moved to Belgium.
Volvo didn’t instantly reply to a Reuters request for remark outdoors common enterprise hours.
The European Fee, which oversees commerce coverage within the 27-nation bloc, launched an investigation final yr into whether or not Chinese language-made pure electrical autos acquired distortionary subsidies and required further tariffs.
The countervailing investigation was formally launched on October 4, and the investigation interval can last as long as 13 months. The Fee can impose provisional countervailing duties 9 months after the beginning of an investigation.
Relations between China and the EU have been strained by components together with Beijing’s nearer ties with Moscow following Russia’s invasion of Ukraine. The EU is searching for to cut back its dependence on the world’s second-largest economic system, particularly for supplies and merchandise wanted for its inexperienced transition.