PARIS (Reuters) – The EU’s duties on Chinese language-made electrical vehicles will velocity up plant closures in Europe by native automakers, as tariffs will push Chinese language producers to construct services in Europe, including to overcapacity issues, Stellantis’ CEO mentioned on Monday.
European governments, together with Italy, try to draw Asian automakers as the businesses step up their business presence within the area.
Manufacturing vehicles in Europe would enable them, underneath sure circumstances, to keep away from duties on EVs being launched by the European Union.
Tariffs are a “good communication device” however have negative effects, Stellantis CEO Carlos Tavares mentioned on the Paris Automobile Present.
“It will increase the overcapacity of the manufacturing system of Europe. The way in which to keep away from customized duties is to construct in Europe,” he added. “You’re accelerating the necessity to shut down crops”.
Talking to Italian media, Tavares talked about the case of Chinese language EV large BYD, which is constructing its first European meeting plant in Hungary.
“Chinese language carmakers is not going to go to Germany or France or Italy to construct their vehicles, as a result of they’d have price disadvantages there, ranging from power prices,” he mentioned.
Rome, which is at odds with Stellantis over its declining output in Italy, has mentioned it’s in talks with Asian automakers over attainable manufacturing investments, together with with China’s Dongfeng and Chery Auto.
(Reporting by Florence Loeve; Writing by Giulio Piovaccari; Enhancing by Cristina Carlevaro and Mark Potter)
