Germany Calls for EU Tariffs on Chinese Hybrid Car Imports Amid Industry Concerns
Germany Urges Expanded EU Trade Measures Against Chinese Hybrid Cars
Vice Chancellor Klingbeil's Call for Action
WOLFSBURG, Germany, Sept 17 (Reuters) - Germany's Vice Chancellor Lars Klingbeil said on Thursday the European Union needs to widen tariffs against Chinese imports to include hybrid cars, saying Volkswagen and domestic peers were threatened by Chinese manufacturing subsidies.
"I am in favour of us standing up against unfair trade practices, and for Germany to adopt a different level of self-confidence and assertiveness towards countries that threaten our industry," said Klingbeil, who is also finance minister.
Volkswagen's Restructuring and Industry Transformation
Restructuring Measures at Volkswagen
Speaking at Volkswagen's headquarters in Wolfsburg, Klingbeil added that the agreed restructuring measures at the carmaker were just the beginning of an ongoing transformation.
Proposed EU Tariffs and Local-Content Rules
He added the EU will have to tighten local-content rules and introduce tariffs against Chinese-made plug-in hybrid cars.
Industry Response and Labour Concerns
Labour Representatives' Perspective
VW works council leaders met with Klingbeil amid a ramped-up restructuring at Volkswagen sealed by the supervisory board earlier this month despite opposition from the labour side and the state of Lower Saxony, the company's second-biggest shareholder.
Pressure on Manufacturing Costs
Under pressure to slash manufacturing costs in Germany, labour representatives argue that cutbacks alone will not secure Volkswagen's future, calling on the EU to shield local industry from cheap Chinese cars flooding the market.
EU's Trade Deficit and Future Policy
The European Commission is currently assessing its trade deficit with China, amid industry calls to expand tariffs on Chinese-made EVs to include plug-in hybrids and draw up 'Made in Europe' rules.
Reporting Credits
(Reporting by Rachel MoreWriting by Ludwig Burger; editing by Matthias Williams and Toby Chopra)
