Like all other car brands from China – and brands that have cars built in China – Volvo is hit by punitive tariffs. And although the brand had hoped to be exempt.
The EU has imposed punitive tariffs on Chinese electric cars, and Volvo is no exception. This tax hits hard, especially the Volvo EX30, which is otherwise among the best-selling electric cars in Europe.
Volvo Cars recognizes the result of the vote earlier this month on the introduction of tariffs on electric cars coming to the EU from China, the brand says in a comment to Dagens Industri .
The penalty, which comes into effect today, could mean extra taxes of up to 45 percent for car manufacturers. For the Volvo EX30, this means an additional cost of 19.3 percent, which could potentially eliminate Volvo's entire profit margin on the model.
Volvo had hoped to avoid the punitive tariff, but the EU has refused to make so much as one exception for the former Swedish brand. Nor does it matter that Volvo has announced that it will move more of its production to the EU. Blue. to the brand's factory in Belgium.
– We are continuing with our long-term strategy of building our cars where we sell them, including building the EX30 in our Ghent factory. Our full focus right now is on getting production started in the first half of 2025, says Volvo's press department.
READ ALSO: Audi closes car factory – over 3,600 lose their jobs
Polestar, which produces Polestar 2 and Polestar 4 in China, is also hit by the punitive duty. The future of the Polestar 2 looks uncertain, while Polestar plans to move production of the Polestar 4.
The situation is even more serious in the United States, where an upcoming ban on Chinese technology could mean that Polestar cars will effectively be banned in the country from 2030.
These new measures have sparked protests among automakers, who are now faced with more expensive cars and uncertainty about future production. The Volkswagen group is now directly warning that the new China customs could close an entire brand. Read more about it here .
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