The European Union (EU) has decided to impose high tariffs on electric vehicles made in China, and Volvo is reportedly considering producing some models in Europe instead of China, Bloomberg reported on the 9th (local time).
According to the British daily The Times, models such as the EX30 and EX90 are expected to be produced in Belgium.
Bloomberg cited sources saying that Volvo may additionally move the assembly of some models to the United Kingdom.
Foreign media analyzed this as a measure to respond to the EU's countervailing tariffs.
The European Commission launched an anti-subsidy investigation last October, claiming that China provides excessive subsidies to electric vehicles produced domestically, weakening the competitiveness of European products. Currently, the EU imposes a 10% tariff on Chinese electric vehicles, but the tariff is expected to increase as early as the 4th of next month.
Experts predict that tariffs could soar to 25-30% in the future.
Volvo was acquired by China's Geely Automobile in 2010 and has production plants in China, so it is expected to be most affected by the tariff imposition.
A Volvo spokesperson told The Sunday Times, "We are monitoring the European Commission's investigation and cannot comment on this matter until a conclusion is reached."
Experts anticipate that if the EU imposes countervailing tariffs, China may retaliate.
Will Roberts of Rho Motion, a market research firm specializing in electric vehicles, stated, "If this leads to retaliatory measures from China, it could escalate into a trade war, which could be devastating for regions dependent on supply chains dominated by China."
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