Stellantis CEO says electric vehicle tax is a trap

Automobile giant Stellantis CEO Carlos Tavares speaks to journalists during a joint Stellantis and Leapmotor media event in Hangzhou, Zhejiang province, eastern China on May 14, 2024.

– | Afp | beautiful images

Stellantis It is expected that there will be a big battle with Chinese rivals in the European market tramThe group’s CEO Carlos Tavares said on Wednesday, warning of significant consequences for jobs and production.

The comments in an interview with Reuters were some of the CEO’s strongest yet as tensions between Beijing, Brussels and Washington over electric vehicle trade grow. The EU is expected to decide next month whether to follow the US in imposing additional tariffs on Chinese automakers.

US officials on Wednesday said they plan to attack Chinese-made electric vehicles and electric vehicle materials. Tax up to 100% before August 1.

Tavares he said impose tariffs on Chinese cars imports into Europe and the US are “a big trap for countries going down that path” and will not allow Western automakers to avoid restructuring to meet the challenge from other manufacturers. China costs are lower.

The European Commission will announce its initial decision on potential tariffs on Chinese electric vehicle imports on June 5. Tariffs.

“When you fight against competition to absorb the 30% cost-competitive advantage that favors the Chinese, there are social consequences,” Tavares said. But governments, European governments, they don’t want to face that reality right now.” .

Tavares said the tariffs would only spur inflation in areas where they are imposed, potentially hurting sales and production.

“We are not talking about the Darwinian period, we are in it,” Tavares said at the Reuters Events Automotive Europe conference in Munich, adding that the price war with Asian rivals will be “very difficult ”.

“It’s not going to be easy for dealers. It’s not going to be easy for suppliers. It’s not going to be easy for OEMs. As we know in Europe, everyone is talking about change.” change as long as that change is for someone else.” other.”

Italy’s nationalist government has pressed Stellantis to commit to producing 1 million vehicles a year in the country, up from 750,000 last year. Tavares did not specifically answer the question about Italian demand, but pointed to overcapacity affecting the European auto sector.

Tavares said Chinese automakers are on track to sell 1.5 million vehicles in Europe, equivalent to a 10% market share, and have up to 10 assembly plants worth of production.

“If we let the market share of Chinese OEMs grow…then obviously you’re going to create overcapacity, unless you fight that competition,” Tavares said.

Tavares said Stellantis is engaging in “very productive discussions” with labor unions at its European operations: “Most of them agree with us on the risk we are facing and how we should get through that period.”

Stellantis announced last week that it will begin selling its electric vehicles. engine jumped External Chinese partners China this year, starting in Europe in September.

The Stellantis-Leapmotor joint venture, the first between a Western and Chinese automaker designed to sell and produce electric vehicles from a Chinese manufacturer outside of China, will help the French group- Italy expands low-cost car products globally.

“We will try to be Chinese, which means instead of being completely defensive against the Chinese attack, we want to be part of the Chinese attack,” Tavares said.


News 7F: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button