Volvo is reportedly shifting EV manufacturing to Belgium forward of schedule. Manufacturing of the brand new Volvo EX30 and EX90 is transferring to Belgium to keep away from anticipated tariffs on electrical autos made in China.
Volvo accelerates EX30, EX90 EV manufacturing in Belgium
Though Volvo wasn’t anticipated to start constructing its new EVs within the EU till 2025, it appears just like the transfer might be occurring forward of schedule.
In response to a new report from The Occasions, Volvo has already began transferring manufacturing amid anticipated incoming tariffs on EVs imported from China.
Volvo introduced it deliberate to construct its new low-cost EX30 at its Ghent plant in Belgium final October. Nevertheless, the shift was anticipated “from 2025,” as Volvo’s press launch said.
Along with the EX30 and EX90, Volvo might transfer meeting of some fashions going to the UK, The Occasions report said, citing anonomyous sources. The report additionally claims Volvo is without doubt one of the most uncovered automakers to tariffs on China-made EV tariffs.
With EV imports from Chinese language automakers like BYD and MG surging, the EU claims unfair authorities subsidies are selling the expansion.
New tariffs on EVs made in China anticipated
The EU launched an investigation into Chinese language EV subsidies as “world markets are actually flooded with cheaper electrical automobiles,” European Fee President Ursula von der Leyen mentioned in October.
With commerce tensions heating up, the EU is anticipated to disclose if new tariffs on EV imports from China might be imposed as early as this week. The brand new tariffs would go into impact July 4, bumping them above the present 10%.
In the meantime, Volvo denied the report, saying, “It’s untimely to take a position on the implications of what this investigation will conclude, or any potential measures.”
A Volvo spokesperson clarified in an e mail: “The choice to additionally construct the EX30 in Ghent displays our ambition to construct our automobiles the place we promote them as a lot as potential.”
Volvo was already planning to maneuver EX30 manufacturing to its Belgium plant as demand for the low-cost compact electrical SUV climbed. Regardless of its small dimension, the EX30 is already a “worthwhile development driver” for Volvo.
After launching manufacturing in China late final yr, Volvo bought 14,500 EX30s within the first quarter of 2024. That’s greater than the EC40 (6,000) whereas almost topping the EX40 (17,400).
The momentum has continued, with the EX30 rapidly changing into “one of many best-selling absolutely electrical automobiles in Europe” by Could, in response to Björn Annwall, chief business officer and deputy CEO at Volvo Vehicles.
Volvo has bought 72,325 electrical automobiles by the primary 5 months of the yr, up 45% from the 49,725 handed over at the moment final yr. Of them, almost 57,400 had been bought in Europe, up 68% year-over-year.
In different information, Volvo’s first EX90 electrical SUV rolled off the meeting line in South Carolina final week.
Electrek’s Take
Though it’s not confirmed (Volvo mentioned it’s too early to take a position), with almost three-quarters of Volvo’s absolutely electrical autos bought YTD being in Europe, transferring EX30 and EX90 manufacturing to Belgium is sensible both manner.
With demand constructing for low-cost EVs, just like the EX30, having native manufacturing would velocity up deliveries and minimize prices. Volvo is already planning to take action, however with EX30 gross sales surging, beginning manufacturing forward of schedule wouldn’t be a shock.
After Volvo was one of many first legacy automakers to decide to an all-electric future, it’s already seeing the outcomes.
Volvo’s absolutely electrical automobiles accounted for 25% of all autos bought final month. The EX30 and EX90, inbuilt Belgium, ought to assist Volvo get EVs into buyer arms faster.
Volvo additionally introduced on Monday that it’s recalling all 71,956 EX30 fashions made thus far as a consequence of a software program glitch (learn extra right here).
Supply: Bloomberg, The Occasions
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