Volvo's EX30 model from Belgium touts its promises.
Volvo Shifts Production of EX30 to Europe to Avoid Tariffs and Improve Delivery Times
Volvo Cars is shifting the production of its popular electric compact crossover, the EX30, from its plant in Zhangjiakou, China, to its facility in Ghent, Belgium. This strategic move is aimed at avoiding high EU tariffs on Chinese electric vehicles and cutting delivery times significantly for European buyers.
Previously, European buyers faced wait times up to eight months for the EX30. However, with local production in Belgium, Volvo plans to reduce these wait times to around 90 days.
For the U.S. market, the EX30 will also be produced in Belgium going forward, rather than being imported from China. This move helps reduce import duties for the U.S. and aligns with Volvo's broader strategy to increase production synergies within Europe and improve factory utilization. So, the U.S. version of the EX30 will now come from Belgium, which is expected to support faster delivery and potentially lower costs related to tariffs and logistics.
The tariffs on Chinese electric vehicles in the EU have increased from 10% to 28.8%, making the Gent-produced version of the Volvo EX30 a significant player on the American market in the future.
Volvo Europe CEO Arek Nowinski stated that "The cheaper the car, the more vehicles you need to have in stock." This shift in production is part of Volvo's wider move towards regionalizing production to avoid tariffs and enhance efficiency across Europe and North America, including separate production plans for other models like the XC60 in the U.S.
The production of the EX30 is now taking place at Volvo's plant in Gent, Belgium, which has been operational since April. Pre-produced Volvo EX30 vehicles can reach customers in as little as a week. Volvo has also announced plans to introduce the larger EX40, which is also expected to be built in the Belgian plant, for 2026.
The global sales decline of nine percent in the first half of 2022 and an operating loss of around $1 billion in the second quarter for Volvo are directly linked to delivery difficulties of the EX30. By shifting production to Europe, Volvo hopes to address these challenges and meet the growing demand for its electric vehicles.
[1] Volvo shifts EX30 production to Europe to avoid high EU tariffs
[2] Volvo moves EX30 production to Belgium to improve delivery times
[3] Volvo EX30 production shifts to Belgium to meet demand and reduce tariffs
[4] Volvo starts production of EX30 in Belgium to meet demand
[1] Volvo's strategic decision to shift the production of its EX30 from China to Belgium is aimed at avoiding the high tariffs on Chinese electric vehicles in the EU and improving delivery times for European buyers.
[2] In an effort to reduce delivery wait times up to eight months for European buyers, Volvo is moving the production of the EX30 from China to its facility in Ghent, Belgium.
[3] To address challenges caused by delivery difficulties of the EX30 and meet the growing demand for its electric vehicles, Volvo has decided to shift the production of the EX30 from China to Belgium, aiming to reduce tariffs and logistics costs.
[4] In an attempt to lower tariffs and logistics costs, enhance efficiency, and meet the growing demand for its electric vehicles, Volvo is moving the production of the EX30 from its plant in Zhangjiakou, China, to its facility in Ghent, Belgium.
