Geely considers local production in Europe

(Credit: China Auto Show)

Geely is considering local production in Europe. The Chinese automaker is scouting out locations for a plant in Europe. 

“It is not 100% yet. We have a lot of possibilities,” said Geely’s Auto Group Vice President Li Chuanhai. 

Geely is reportedly talking to the government in Poland about establishing an electric vehicle (EV) factory. Earlier this year, Poland was mulling over the previous administration’s plans to build an EV plant in the country. The EV project was called Izera and would be financially supported by the European Union’s recovery funds.

However, Reuters sources shared that Poland thinks Geely is not an ideal partner for its plans.

If Geely decides to build an EV plant in Europe it will likely avoid the European Commission’s tariffs on EV imports made in China. Geely BYD and SAIC were the first three automakers to receive an individual tariff rate from the Commission. Geely initially received a rate of 19.9%, which was significantly lower than the maximum of 38% at the time. 

In August, the Commission revised its tariff rates on China-made EV imports, down to a maximum of 36.3%. It gave Tesla an individual tariff rate of 9% and reduced Volkswagen’s rate for the Cupra Tavascan. Geely’s tariff rate was reduced to 19.3% while BYD and SAIC received new rates of 17% and 37.6%, respectively.

The Commission is expected to lower tariff rates even further for Tesla and other foreign automakers that produce EVs in China. Tesla’s new rate is expected to be below 8%. 

Compared to the United States and Canada’s proposed 100% rates, the Commission’s China-made EV import tariff is relatively low. However, the Chinese Ministry of Commerce has spoken out against the Commission’s tariff, retaliating with potential tariffs on European pork, alcohol, and dairy products imported into China.

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Maria Merano: Veteran writer and editor, who believes harmony between tech and nature is achievable. We just need to learn to compromise.
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