Sino-Swedish automaker Volvo Cars will delay the introduction of its EX30 sub-compact e-SUV to the US, as the Chinese-manufactured vehicle falls foul of recently introduced tariffs on imports from the country.
Volvo will continue to work on transferring manufacturing of the EX30 to its plant in Ghent, Belgium to circumvent sharp costs that would be incurred by exporting cars made in China to the US under the new levies.
The EX30's launch in Europe at the beginning of this year has so far proved a resounding success for Volvo, with the EV quickly becoming Europe's third best-selling EV in only its third month on the market.
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The US launch of the EX30 is now set back by a year, with the EV potentially not hitting the US market until late 2025.
"Today Volvo Cars is informing retailers and EX30 pre-order customers that, due to changes in the global automotive landscape, the US introduction of the EX30 will be delayed while we ramp up production at our plant in Ghent, Belgium, with a 2025 target delivery date to be announced," Volvo Cars says.
Part of the EX30's early success is its affordable price tag compared to other EVs in its segment. It may be more challenging for European-based manufacturing to allow Volvo to sustain the c.15pc margins that have its Chinese manufacturing base has so far afforded it.
On the other hand, the firm had already flagged that it was planning to move some production of EX30s destined for the European market to Ghent prior to US tariff decisions, so its roadmap is already in place.
The EU followed the US by raising its own tariffs on Chinese-made vehicles, although Europe's variable rates are not as punitive as the US 100pc duty. Volvo's Chinese parent Geely will face a hike from 10pc to 30pc.
Volvo has reportedly offered US EX30 reservation holders up to a $2,500 credit against other Volvo EVs.
Ciaran has written about finance, politics and culture. He is passionate about e-mobility and what it means for our way of life.
Ciaran has a Masters in Ancient Philosophy from Oxford University.
