According to media reports, Oliver Blume, CEO of the Volkswagen Group, stated that the EU should consider adjusting its high import tariffs on electric vehicles from China to allow for more investment opportunities for Chinese car manufacturers in Europe.
Currently, the proposed tariffs imposed by the EU on pure electric vehicles from China would result in Chinese car manufacturers incurring additional costs of billions of dollars to export vehicles to the EU.
Blume suggested that Chinese companies investing in Europe and creating jobs should receive incentives, such as exemptions from the EU tariffs, which can be as high as 45% on Chinese electric vehicles.
He also noted that potential countermeasures from China against German automobiles could affect not only Chinese Volkswagen vehicles but also exports of brands like Audi, Porsche, and Lamborghini to China.
"The potential retaliatory tariffs from China would be particularly dangerous for the German automotive industry. German manufacturers would face significant disadvantages in the Chinese market. This is why we clearly oppose the EU's new tariffs on China," Blume said.
Reports indicate that ten EU member states voted in favor of raising tariffs on Chinese electric vehicles, while five, including Germany, voted against it, and twelve abstained.
The outcome of the EU tariff vote represents another blow to the German automotive industry, which is already facing profit warnings and heightened concerns about balance sheets amid slowing demand and intense competition. Volkswagen has revised its performance expectations downward for the second time this year and is considering closing plants in Germany for cost-cutting measures.
Volkswagen, BMW Group, and Mercedes-Benz have all opposed the EU's high tariffs on electric vehicles imported from China, as approximately one-third of their sales come from the Chinese market.
