Volvo, which is majority-owned by China's Geely, was
considering halting sales of Chinese-built EVs bound for Europe if tariffs were
introduced, the newspaper said, citing company insiders.
However, the report added that shifting production of
Volvo's EX30 and EX90 models from China to Belgium is expected to negate the
need for the company to do so and that the company insisted suspending sales of
EVs made in China was no longer being considered.
The manufacturing of certain Volvo models bound for the
United Kingdom could also be moved to Belgium, Times said.
Volvo did not immediately respond to a Reuters request for
comment outside of regular business hours.
The European Commission, which oversees trade policy in the
27-nation European Union, launched an investigation last year into whether
fully-electric cars manufactured in China were receiving distortive subsidies
and warranted extra tariffs.
The anti-subsidy investigation, officially launched on Oct.
4, can last up to 13 months. The Commission can impose provisional anti-subsidy
duties nine months after the start of the probe.
Relations between China and the EU have been strained by
factors including Beijing’s closer ties with Moscow after Russia’s invasion of
Ukraine. The EU is seeking to reduce its reliance on the world's second-largest
economy, particularly for materials and products needed for its green
transition.