Volvo affirms commitment to production in China; denies plans to move operations to Ghent

Reports suggesting that Volvo plans to move production from China to Ghent in response to increased European import tariffs on Chinese cars are inaccurate. The European Commission is considering imposing higher tariffs on imported electric cars from China due to illegal subsidies in that country. This potential tariff increase has prompted speculation that Volvo may shift production to its factory in Ghent.

Volvo currently manufactures cars in Sweden, Ghent, the United States, and China, and is owned by Chinese carmaker Geely. Any rise in European tariffs on Chinese imports would have a significant impact on Volvo. While there were rumors that production of the EX30 and EX90 models would be moved to Ghent, Volvo refutes this claim.

In reality, the EX90 is produced in the United States, not in China. Volvo had previously announced plans to produce the EX30, a small electric SUV, in Ghent starting in 2025. This decision was not influenced by the European Commission’s investigation into Chinese trade practices. Moving production to Ghent aligns with Volvo’s strategy of manufacturing cars closer to their target markets.