The punitive tariff on Chinese electric cars, which the EU adopted in July, is going to hurt Volvo. The loss could run up to DKK 4 billion.
– I do not rule out price adjustments on the EX30.
This is what Volvo Car's head of economics and finance, Johan Ekdahl, says in a comment to Göteborgs-Posten , after the EU in July hit car brands that produce electric cars in China with a punitive tariff.
Geely-owned Volvo gets rid of 20 percent on top of the 10 percent duty that must already be paid on all cars from China. The duty rate could have been higher.
This is, for example, the case for MG, which must pay 38.1 percent duty because the parent group SAIC has refused to cooperate with the EU in connection with an investigation into illegal state aid to the car industry from China's communist dictatorship.
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Back at Volvo, however, analysts believe that even the somewhat lower duty rate could hurt the brand with roots in Gothenburg.
– If you count Volvo, and if the customs duty applies retroactively, it could be up to six billion Swedish kroner in extra costs (3.86 billion Danish kroner, ed.).
– It is almost 20 percent of the full-year result that disappears, says Hampus Engellau, car analyst at Handelsbanken, to Göteborgs-Posten .
In fact, Hampus Engellau has no doubt at all that Volvo is running into increased costs. It is just a question of how the management intends to compensate them.
At home, the price of the Volvo EX30 has already increased. The base model Core cost DKK 274,000 in June 2023. Today, a similar car costs DKK 284,900.
In other markets, however, it is not just the price of the EX30 that Volvo fights with. In England, some customers have been so upset that their otherwise brand new cars are full of faults. Errors that have meant that the importer has bought the cars back. Read more about it here .
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