Volkswagen CEO Suggests Tariff Reductions for Chinese Automakers Investing in Europe
According to foreign media reports, Volkswagen Group CEO Oliver Blume stated that the European Union should consider adjusting its high import tariffs on Chinese-made electric vehicles (EVs) to encourage Chinese automakers to invest in Europe.
Currently, the EU's proposed tariffs on Chinese-made pure electric vehicles could cost Chinese automakers billions of dollars in additional expenses when exporting cars to the EU.
Blume suggested that Chinese companies investing and creating jobs in Europe should receive preferential treatment, such as being exempt from the EU's tariffs, which can be as high as 45% on Chinese-made EVs.
Blume added that potential countermeasures by China against German cars would not only affect Volkswagen cars produced in China but would also impact the exports of brands such as Audi, Porsche, and Lamborghini to China.
"China's possible counter-tariffs are particularly dangerous for the German automotive industry. German automakers would face significant disadvantages in the Chinese market. This is why we strongly oppose the EU imposing new tariffs on China," Blume said.
It was reported that 10 EU member states voted in favor of raising tariffs on electric vehicles from China, while five member states, including Germany, voted against, and another 12 member states abstained.
The result of the EU tariff vote is another setback for the German auto industry. In the face of slowing demand and increasing competition, the German auto industry is grappling with profit warnings and heightened concerns over its balance sheets. Volkswagen has already lowered its performance expectations for the second time this year and is considering closing its German factories for the first time in an effort to cut costs.
Volkswagen, BMW Group, and Mercedes-Benz all oppose the EU's imposition of high tariffs on electric vehicles imported from China, as approximately one-third of the sales for these three automakers come from China.