BackKlingbeil calls for EU tariffs on Chinese hybrid vehicles
Klingbeil calls for EU tariffs on Chinese hybrid vehicles
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Handelsblatt1 hour agoBusiness1 min readGermanyView original

Klingbeil calls for EU tariffs on Chinese hybrid vehicles

In view of the crisis at Volkswagen, Vice Chancellor Lars Klingbeil is pushing for tougher EU measures against low-cost competition from China.

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In view of the crisis at VW, Vice Chancellor Lars Klingbeil is calling for EU tariffs on Chinese hybrid vehicles, joint ventures and requirements for local production in order to create fair competitive conditions.

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Why It Matters

European car manufacturers are under pressure due to weak demand and strong competition from China.

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Wolfsburg. In view of the crisis at Europe's largest car manufacturer Volkswagen, Vice Chancellor Lars Klingbeil is calling for support from the European Union.

Klingbeil said on Thursday after talks with employee representatives in Wolfsburg that he was urging the federal government to quickly introduce tariffs on hybrid vehicles from China and to clarify the requirements for local production.

He also advocates for an obligation to set up joint ventures if Chinese manufacturers want to do business in Europe. In China, Western manufacturers have had to form joint ventures with Chinese suppliers for years.

"I've been asking myself for a long time why we can't work with the same instruments," said the SPD leader. “We have to play by the same rules.” He perceives a willingness within Europe to take this path.

Lower Saxony's Prime Minister Olaf Lies said the situation in the auto industry was dramatic. “Action must be taken, and acted very quickly,” he said.

The industry is in competition that cannot be won by companies working more efficiently. “It’s a competition in which the rules no longer work.”

VW works council boss Daniela Cavallo said that local content requirements must not only be about the construction of the vehicles themselves, but also about engineering services. “Otherwise we can struggle and still not be able to hold our own in this unfair competition.”

What to Watch

AI outlook — possibilities, not facts

  • Introducing discussions on tariffs on Chinese hybrid vehicles in the EU

    Likely · Within months

Open Questions

  • When will the EU decide on possible tariffs?
  • How does China react to the required joint venture requirements?

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This article was originally published by Handelsblatt.

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