The EU's punitive tariffs on Chinese electric cars risk hitting Volvo in a way where the car brand's future is at risk, reads the warning.
Despite massive problems and customers getting their money back for brand new cars, the Volvo EX30 is a model that already appeals to many here at home. But Volvo's future may be in jeopardy.
At least that's what the brand thinks, even on top of the punitive duty rates that the EU has just adopted. They are up to 37.6 percent and apply provisionally until October.
And although the EU countries cannot agree on the punitive tariff, the Chinese brand is now striking again. Volvo Cars is hit by a punitive duty of 19.6 percent.
This is written by Swedish Dagens Nyheter .
READ ALSO: Sales of these cars have fallen by 100 percent in Denmark
Volvo, which is extremely dependent on the success of the EX30s, is proposing that they be allowed to avoid the almost 20 percent penalty duty for a period of time. Volvo will use the same period to gradually move production to Ghent in Belgium.
Here, the Chinese may end up being the only car manufacturer that is even present in the country. Audi's sales of the Q8 e-tron are going so badly that the Germans are now considering completely closing the only other car factory in Belgium. Read more about it here.
Back in Sweden, the country's Trade Minister Johan Forsell regrets the development. At the same time, he emphasizes the importance of free trade and open markets. Just like the Swedish government, according to the minister, will work to protect Chinese interests in Sweden.
Volvo are not the only ones affected by customs authorities. The hardest hit is the SAIC group – which, among other things, owns MG. Here, the highest duty rate is imposed.
Some others who have taken the consequence are Tesla. Here they raised per 1 July the Danish price for a model made in China.
Read more exciting news from and about the world of cars right here
