In a recent development that could reshape the electric vehicle market, the European Commission’s proposal to impose definitive tariffs on Chinese-made electric vehicles has garnered the necessary support from member states. Mercedes-Benz Group CEO Ola K\u00e4llenius has voiced his concerns over this move, labeling direct tariffs as a “very crude instrument” during the Berlin Global Dialogue on Wednesday.
K\u00e4llenius emphasized that while the European automotive industry faces significant challenges, resorting to tariffs may not be the most effective solution. “There are better solutions,” he stated, suggesting the need for more nuanced approaches to address market imbalances and competition concerns.
Highlighting the interconnected nature of global markets, K\u00e4llenius noted that Mercedes-Benz relies heavily on seamless access to both Chinese and European markets. “With a substantial business serving both regions, we depend on having as much access to markets as possible,” he explained. Any barriers could potentially disrupt supply chains and affect the company’s growth strategies.
The European Commission’s decision comes amid growing apprehension about the competitiveness of European electric vehicle manufacturers compared to their Chinese counterparts. The proposed tariffs aim to protect domestic industries from what is perceived as unfair competition due to state subsidies in China.
As the automotive industry navigates these changes, stakeholders like K\u00e4llenius advocate for cooperative solutions that maintain open markets and foster innovation. The dialogue between policymakers and industry leaders continues, with the hope of finding a balanced path forward that supports both economic growth and fair competition.
Reference(s):
Mercedes-Benz CEO: Directly imposing tariffs 'very crude' instrument
cgtn.com
