- Volvo Cars has kicked off production of its cheapest electric car, the EX30, at its car plant in Ghent, Belgium.
- With existing EX30s already being produced in China, production capacity of the EX30 will be boosted by this move, whilst also allowing Volvo to avoid additional tariffs against Chinese-made EVs in the European Union.
- The EX30 production in Ghent comes after recent investments from Volvo into the facility totalling €200 million.
Volvo swerves EU and U.S. tariffs with new EX30 production location
Belgium-produced EX30 models will play a key part in allowing Volvo to maintain the EX30s relatively low price tag within the European Union, by allowing the manufacturer to avoid additional tariffs against Chinese-built EVs – which currently stand at 18.8% for Volvo’s parent firm, Geely. Togehter, this will also help to maintain the models position as one of the best selling electric cars within the region.
However, for countries where tariffs against Chinese cars do not apply (such as the United Kingdom, Norway, and much of Southeast Asia), EX30 models are still likely to be sourced from its Chinese production site, where overall costs of production remain lower. It’s also yet to be seen whether these European-built EX30s will also reach U.S. shores. Despite the country imposing a 100% tariff against Chinese-built EVs last year, Reuters reported on a tariff refund that made it financially viable for it to continue selling Chinese-built EX30s into the country.
EX30 production at the Ghent plant will include the standard model, as well as the more offroad-focussed EX30 Cross Country. The addition of this new model to the facility is also expected to add an additional 350 jobs at the site, bringing its total number of employees to nearly 6,600. Other fully-electric models already built in Ghent include the EX40 and EC40.
Francesca Gamboni, Chief Manufacturing and Supply Chain Officer for Volvo Cars, commented on the strategic move:
“The EX30 is crucial for us as we continue to strengthen our position in the premium EV market in Europe. Investing in the European production of the EX30 in Ghent perfectly aligns with our long-held strategy to build our cars where they sell best. Our flexible global footprint contributes to our resilience, allowing us to adjust our manufacturing plans with agility.”
Stefan Fesser, Manager of Volvo’s Ghent Car Plant, added:
“Following a decision in autumn 2023 to bring production of the EX30 to Ghent, we were able to industrialise the new model in record time. Thanks to the engagement and collaboration of the entire Ghent team, we cut the industrialisation time in half. Today, we are extremely proud to welcome the EX30 and demonstrate that new technology and innovation enable us to react more flexibly to market demands.”
