How Volvo landed a cheap Chinese EV on U.S. shores in a trade war

A made-in-China electric vehicle will hit U.S. dealers this summer offering power and efficiency similar to the Tesla Model Y, the world’s best-selling EV, but for about $8,000 less.

A made-in-China electric vehicle will hit U.S. dealers this summer offering power and efficiency similar to the Tesla Model Y, the world’s best-selling EV, but for about $8,000 less.

The EX30 from Volvo Cars, the Swedish luxury brand owned by China’s Geely, foreshadows the fierce competitive threat U.S. automakers could face from Chinese EV manufacturers that have surged far ahead of global rivals, especially on affordability.

The $35,000 window sticker of Volvo’s compact SUV hits a sweet spot in the U.S. market, where most buyers cannot afford most EVs. The competitive price reflects an unusual combination of Geely’s China-specific cost advantages and Volvo’s ability to skirt U.S. tariffs on Chinese cars because it also has U.S. manufacturing operations, according to interviews with four sources familiar with Volvo and Geely strategy and several U.S. trade policy experts.

Chinese EV makers can undercut global competitors largely because of the nation’s domination of battery minerals mining and refining, as well as its long-standing commitment to EV development, including heavy government subsidies.

In addition, Geely has slashed manufacturing costs by merging supply chains and sharing platforms and parts with Volvo and other Geely brands, according to two senior Geely managers, who spoke on condition of anonymity because they are not authorized to speak publicly.

https://www.nbcnews.com/business/autos/volvo-landed-cheap-chinese-ev-us-shores-trade-war-rcna149349

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