EV tariffs could hurt European companies and industry, says Polestar CFO

02 September 2024 - 07:06 By Reuters
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Polestar manufactured cars exclusively in China until this month, through factories owned by its co-founders China's Geely and Volvo Cars, making it vulnerable to the hefty tariffs.
Polestar manufactured cars exclusively in China until this month, through factories owned by its co-founders China's Geely and Volvo Cars, making it vulnerable to the hefty tariffs.
Image: Supplied

Import tariffs imposed by the EU and the US on China-made electric vehicles will harm European based companies, the chief financial officer of Swedish EV maker Polestar said on Thursday.

Steep tariffs recently imposed by the US, the EU and Canada on cars made in China have prompted many automakers to speed up plans to move parts of their production to other countries.

CFO Per Ansgar told analysts in a conference call related to its second quarter report on Thursday that he had been in a meeting with the European Commission that day to discuss the tariffs.

Polestar CFO Per Ansgar.
Polestar CFO Per Ansgar.
Image: Supplied

He said he did not think the commission would protect European industry by imposing tariffs, which could hurt European companies that are investing in technology and creating jobs in Europe.

"Of course, it would be better for Polestar and for the European industry if we would have less or no increases of the tariffs," Ansgar said.

Polestar manufactured cars exclusively in China until this month, through factories owned by its co-founders China's Geely and Volvo Cars, making it vulnerable to the hefty tariffs.

In Europe, Polestar will receive a 19.3% tariff due to being part of Geely's group, this is on top of EU's standard 10% duty on car imports, a measure the commission said is aimed at levelling the playing field and countering what it said are unfair subsidies.

However, production of its Polestar 3 SUV started earlier this month in Volvo Cars' South Carolina plant in the US, where it in time will supply the US and European markets.

The company told Reuters earlier after Canada's tariff announcement it was assessing the situation and expected its South Carolina production of Polestar 3 to be an important element. It did not elaborate when asked if a firm decision had been made if the US factory would also supply Canada.

While its Polestar 2 will  continue to be made only in China, the company plans on moving part of its production of Polestar 4 to South Korea, where production start-up is expected for mid-2025 and will supply the US market.

Discussions are also underway, according to Ansgar, to also supply Europe through the plant in South Korea, which is run by Renault Korea Motors.


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