Automotive News Europe — 2024-06-09
Automotive Industry
The country's auto industry is benefiting from business in China and will be able to compete with the Asian country's carmakers if trade remains “fair and free,” German Chancellor Olaf Scholz said.
German Chancellor Olaf Scholz spoke out against restricting automotive trade as the European Union moves closer to slapping tariffs on electric vehicles imported from China.
Germany's auto industry is benefiting from business in China and will be able to compete with the Asian country's carmakers if trade remains “fair and free,” Scholz said Saturday, 8 June 2024.
The EU is expected to unveil tariffs in June 2024 targeting Chinese electric cars following a probe into the country's EV subsidies. Beijing has signaled it's ready to unleash retaliatory duties on EU-made cars with large engines, a move that would hit Germany's Mercedes-Benz, Porsche and BMW the most.
“Isolation and illegal customs barriers — that ultimately just makes everything more expensive, and everyone poorer,” Scholz said at an event organized by Stellantis's Opel subsidiary in Ruesselsheim, Germany. “We do not close our markets to foreign companies, because we do not want that for our companies either.”
Germany's powerful car industry has pushed back against tariffs, saying its business with China secures jobs at home. An escalating trade spat would fuel inflation and delay the transition to a cleaner economy, former Volkswagen CEO Herbert Diess said earlier in June 2024.
Brussels is making a decision on tariffs just as EV sales are slowing in Europe, with automakers including Volkswagen Group and Mercedes-Benz adjusting their rollouts as a result.
Scholz said the industry should continue shifting to battery power to ensure it will remain competitive also in the years to come.
“Doubting progress, delaying renewal and transformation – that would have bitter consequences,” Scholz said. “If we do that, others will overtake us.”