Volvo moves EX30 production to Ghent to avoid 147% tariff risk

Volvo moves EX30 production to Europe

Volvo Cars has moved production of EX30 models for the United States from its Zhangjiakou plant in China to its Ghent plant in Belgium. The company has stated that this will help avoid high tariffs and shorten delivery times while maintaining the car’s competitive position in the market.

This shift brings production closer to key markets, allowing Volvo to manage its supply chains more effectively. It also gives the brand a stronger ability to respond to market conditions without the delays caused by long-distance shipping.

April Marked Ghent’s Start for EX30

Production of the EX30 began at the Ghent facility in April 2025, with initial output for European markets. Volvo indicated the Belgian plant would serve North America and Europe starting in 2025.

As reported by Electrive, logistical difficulties and shipping times later prompted Volvo to adjust its approach. By moving US production to Belgium, the company addressed delivery delays while also avoiding the higher tariffs that would have applied to Chinese-made vehicles.

Long wait times created friction

Volvo’s Europe chief, Arek Nowiński, said some Swedish and German customers faced waits of up to eight months for China-built EX30s in 2024. Such long delays risked dampening enthusiasm for the model.

Nowinski confirmed that these delays were among the reasons for increasing production in Belgium. The company aimed to better meet demand, reduce delivery times, and preserve the EX30’s appeal in a fast-moving electric vehicle market.

Aim for a ninety-day turnaround

Once Ghent is fully ramped, EX30 deliveries are targeted at about 90 days from order to handover, according to Nowiński. This is a significant improvement from the wait times reported when sourcing from China.

A faster turnaround is seen as crucial in maintaining the model’s relevance. Shorter delivery cycles support sales momentum, help dealers keep customers engaged, and ensure the EX30 remains competitive against rival electric crossovers.

Tariffs and delays weakened sales

EX30 ranked among Europe’s top EVs in 2024; by H1 2025 it was outside the top 10 as tariffs and wait times weighed on results. The outlet linked this decline to increased tariffs and longer delivery times.

This drop in rankings demonstrated the combined effect of higher costs and slower fulfillment. Moving US-bound production to Belgium is one step Volvo has taken to restore its sales position and maintain market confidence.

Leadership confident in a comeback

Volvo CEO Håkan Samuelsson told Automotive News (as quoted by Electrek) that European production should help restore EX30 sales and market share. He cited faster delivery and proximity to customers as key advantages of this change.

Samuelsson’s comments reflect a focus on protecting the brand’s performance in both Europe and the United States. The company views local production as a way to respond more quickly to changes in demand and trade conditions.

Benefits for American buyers

The production change means American buyers avoid the 100% U.S. tariff on Chinese-made Under a new EU–U.S. trade arrangement effective Aug. 1, 2025, EU-built cars face a 15% U.S. duty; producing EX30s in Belgium also avoids the separate 100% tariff on China-built EVs.

Volvo has said this move keeps the EX30 priced competitively while maintaining the quality and features that earned it recognition in Europe. It also ensures a more consistent supply for US dealers and customers.

Tariffs made Chinese models unviable

A 100% U.S. tariff on Chinese-built EVs would make a China-built EX30 effectively unsellable at its intended price point.

Producing in Belgium avoids that 100% rate; EU-built cars currently face 27.5% in U.S. duties. This allows Volvo to maintain the EX30’s price structure and remain competitive with other electric crossovers in the US market.

Matching American tastes

Volvo has announced plans to align its US product lineup with market trends, particularly the popularity of crossovers and SUVs. The EX30’s size and design make it a natural fit for this strategy.

Producing US-bound models in Belgium allows for quicker adjustments to features or specifications based on local consumer preferences. This flexibility helps Volvo keep its offerings relevant in a competitive automotive landscape.

Navigating inflation and politics

Electrek has noted that inflation and the shifting political climate are factors in Volvo’s production decisions. Tariffs and trade policy changes can quickly impact pricing and availability for imported vehicles.

By manufacturing in Belgium for the US market, Volvo reduces its exposure to these uncertainties. This move provides more stability in pricing and supply planning, both of which are vital in the current economic environment.

Ghent’s growing importance

Recent reporting indicates Ghent will play a central role in supplying Europe and North America as production ramps; no firm multi-year timeline has been published. The plant is already a major contributor to the European market.

This expanded role reflects Volvo’s strategy to diversify production. By serving both Europe and the US, Ghent helps reduce the risks of over-reliance on a single manufacturing location.

South Carolina joins the effort

Volvo’s Ridgeville, South Carolina, plant assembles the EX90 and Polestar 3; XC60 production is scheduled to start in late 2026. This expansion supports Volvo’s “build where you sell” strategy and helps avoid import tariffs.

The company has indicated that this dual-site strategy supports flexibility and supply chain resilience.

Strategic outlook for three years

Recent reporting indicates Ghent and South Carolina are central to Volvo’s U.S. supply strategy as production ramps up; no firm multi-year timeline has been provided.

The year outlook gives Volvo time to evaluate further expansion or changes. It also allows the company to adapt to shifts in technology, consumer demand, or trade rules without disrupting supply.

Learning from supply chain hurdles

Reports by Electrive tied EX30 shipping from China to lengthy delivery times, contributing to the decision to add European production. These bottlenecks added weeks or months to delivery times.

By producing in Belgium, Volvo shortens its supply chain and gains more control over scheduling. This helps ensure that vehicles reach customers more predictably and reduces exposure to unpredictable international shipping issues.

Keeping the price competitive

Electrek stated that producing in Belgium avoids the high costs of 147 percent tariffs on Chinese imports. This keeps the EX30 priced competitively in the US market without cutting into quality or profitability.

Maintaining this balance between value and features is important for attracting a broad range of buyers. It also supports the model’s positioning in both the premium and mainstream EV segments.

Building for the future

Industry reporting confirms that Ghent and South Carolina will remain essential to Volvo’s American market plans in the coming years. This arrangement supports consistent supply and pricing stability.

Volvo’s public statements and recent reporting indicate that diversifying production, particularly between Ghent and South Carolina, supports long-term supply resilience amid tariffs, logistics challenges, and shifting global conditions.

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Big news for Volvo fans: EX30 production is heading to Ghent to dodge massive tariffs. Do you think this move will help prices stay competitive?

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This slideshow was made with AI assistance and human editing.