According to foreign media reports, German Chancellor Olaf Scholz said at the opening ceremony of Mercedes-Benz's first battery recycling plant that German automakers should not fear competition from China.
"Some people say that China is doing better than us in electric vehicles. German companies don't need to be afraid of this competition," Scholz said, noting that the German auto industry has previously withstood competition from South Korea and Japan. He also reiterated Germany's opposition to the EU imposing tariffs on electric vehicles produced in China, stressing that Germany should enhance its capabilities through innovation and technology to cope with global competition, rather than relying on protective tariffs.
"I am against tariffs that will harm us," Scholz said at the opening of Mercedes-Benz's battery recycling plant in Kuppenheim, a southwestern German city. He added that the EU should impose tariffs only in areas where dumping and subsidies genuinely disadvantage European producers, such as the steel industry. He emphasized that while protecting local industries, it is essential to ensure a fair competitive environment to safeguard the overall interests of European manufacturing.
The European auto industry is facing multiple challenges, including high production costs, managing the transition to electric vehicles, declining demand, and increasing competition.
These issues have led some European automakers to reduce production capacity, and the region's leader, Volkswagen, is even considering closing factories in Germany for the first time. This reflects the pressures on the German auto industry and how it is adapting to market changes, indicating that the traditional production model may face significant adjustments.
Mercedes-Benz board member responsible for production, Joerg Burzer, said that aside from the Sindelfingen plant in Germany (which produces the high-end S-Class model series), all Mercedes-Benz factories are being well utilized.
In the third quarter of this year, Mercedes-Benz's sales in China fell 13% year-on-year, with sales in China accounting for one-third of the group's total sales. The sales decline in China was primarily due to decreased consumer demand for luxury cars, particularly the S-Class model.