Higher EU Tariffs on Chinese Cars May Boost Volkswagen Partnerships, Says German Official
EU Tariff Strategies and Potential Impact on Volkswagen
BERLIN, July 16 (Reuters) - The European Union should consider raising tariffs on cars made in China to increase pressure on Chinese automakers to partner with European manufacturers such as Volkswagen, a minister in the German state of Saxony, home to a VW plant, said in an interview published on Thursday.
Calls for Increased Tariffs
"We need to consider imposing higher tariffs on Chinese-made cars at the EU level," Dirk Panter, economy minister in the eastern state of Saxony, told the Bild newspaper.
Volkswagen's Response to Market Pressures
Threats of Factory Closures
His comments follow threats by Volkswagen to close four German factories in the coming years, including the all-electric Zwickau plant in Saxony, if no other solution is found.
Potential for European Production
Volkswagen CEO Oliver Blume has said one option could be producing the group's Chinese-developed models in Europe. He has also floated the possibility of partnerships with Chinese carmakers.
Joint Ventures as a Solution
"If a joint venture in Saxony could help avoid European tariffs, that would be a bargaining chip that would allow us to negotiate from a completely different position," Panter told Bild.
Chinese Automakers' Expansion in Europe
Chinese manufacturers like BYD have been building their market share in Europe, including with popular plug-in hybrid models not covered by the EU's current tariffs on all-electric vehicles.
Panter's Perspective on Market Access
"We will not keep Chinese manufacturers out of Europe," Panter said. "Anyone who wants access to our market must also take responsibility for value creation and employment in Europe."
(Reporting by Rachel More, Editing by William Maclean)
