Quotes: EU votes in favour of hefty tariffs on China-made EV imports

Allegro.eu SA

04/10/2024 16:01

(Adds VW's SEAT and Hargreaves Lansdown)
       LONDON, Oct 4 (Reuters) - The European Union backed
tariffs of up to 45% on imported Chinese electric vehicles (EVs)
on Friday as it looks to counter Beijing's subsidies for
automakers now targeting Europe.
    Here is political and industrial reaction to the news:   

    EUROPEAN COMMISSION PRESIDENT URSULA VON DER LEYEN:
    "The electric vehicle sector holds huge potential for
Europe's future competitiveness and green industrial
leadership."
    "EU car manufacturers and related sectors are already
investing and innovating to fully develop this potential.
Wherever we find evidence that their efforts are being impeded
by market distortions and unfair competition, we will act
decisively."
    "And we will do this in full respect of our EU and
international obligations - because Europe plays by the rules,
within its borders and globally. This anti-subsidy investigation
will be thorough, fair, and fact-based." 
    
    GERMAN FINANCE MINISTER CHRISTIAN LINDNER ON X: 
    The EU Commission "should not trigger a trade war despite
the vote in favour of possible punitive tariffs against China.
We need a negotiated solution."
    
    SPAIN'S ECONOMY MINISTER CARLOS CUERPO:
    "Beyond the imposition of tariffs, we have to continue going
forward in this negotiation, since it is important to protect a
sector as strategic as the automobile sector while avoiding an
escalation of trade measures, which could be detrimental to
all." 
    
    ITALY'S INDUSTRY MINISTER ADOLFO URSO: 
    "We are against any hypothesis of a 'trade war' and will
work together to avoid it. We must preserve the industrial and
commercial partnership with China, with whom we want to continue
working in a win-win logic based on the principle of
reciprocity, also for the sake of global economic stability."
    
    SWEDEN'S MINISTER FOR FOREIGN TRADE BENJAMIN DOUSA:
    "We have had very positive signals just recently from the
Commission that they hopefully could go ahead with individual
solutions for the auto industry and for Volvo Cars
specifically."
    "Sweden's line is that the best thing would be that China
and the EU together can come to an agreement in relation to this
problem."
    
    HUNGARIAN PRIME MINISTER VIKTOR ORBAN:
    "What they are making us do right now, or what the EU wants
to do, is an economic cold war."    
    
    SPOKESPERSON FOR THE FRENCH AUTOMAKERS ASSOCIATION (PFA): 
    "It is a good thing that a decision has received support
from member states for the adoption of customs duties. We are in
favour of free trade but within the framework of fair rules." 
    
    BMW  BMWG.DE  CEO OLIVER ZIPSE:
    "Today's vote is a fatal signal for the European automotive
industry. What is needed now is a quick settlement between the
EU Commission and China to prevent a trade conflict from which
no one gains."
    "The fact that Germany voted against the tariffs is an
important signal and increases the chances for a negotiated
settlement."
    
    VOLKSWAGEN  VOWG_p.DE : 
    "We stand by our position that the planned tariffs are the
wrong approach and would not improve the competitiveness of the
European automotive industry."
    "We appeal to the EU Commission and the Chinese government
to constructively continue the ongoing negotiations for a
political solution."
    
    VW'S SEAT WHICH MAKES THE TAVASCAN, AN ALL-ELECTRIC SUV, IN
CHINA:
    "SEAT S.A. is actively working with the VW Group, to
minimise the potential consequences of this resolution for the
CUPRA Tavascan. 
    "The company will do everything possible to prevent these
additional duties from affecting the price of the CUPRA
Tavascan, as part of its commitment to customers and partners."
    "As first proof of this commitment, the price of the car
will remain unchanged for all deliveries in 2024. "    
    
    GEELY HOLDING  GEELY.UL :
    "Geely Holding expresses great disappointment in the
Commission's decision. The decision (...) is not constructive
and may potentially hinder EU-China economic and trade
relations, ultimately harming European companies and consumer
interests."
    
    GERMAN CAR LOBBY VDA PRESIDENT HILDEGARD MUELLER:
    "The proposed tariffs would not only further increase the
risk of a mutual trade conflict, but would also make vehicles
considerably more expensive for consumers. The potential damage
that could be caused by countervailing duties is therefore
greater than the potential benefits of the instrument."
    "Increasingly sealing off the market is not an option for
the European - and in particular the German - automotive
industry."
    
    SAIC  600104.SS  UNIT MG MOTOR FRANCE:    
    "Today, the European Commission is planning to excessively
tax the 100% electric vehicles offered by MG in France, thereby
slowing down the transition to more virtuous individual mobility
which the same Commission has called for by 2035."
    "Faced with this situation, MG Motor France has decided not
to penalise its customers in 2024, and to maintain the list
prices of its 100% electric models, the only ones affected by
the vote on Friday October 4, without even waiting for the
result."    

    CAPITAL ECONOMICS:
    "The official approval of these import duties won't change
(the) picture much. And it's still possible that the tariffs
will be reduced or revised over the coming months under pressure
from Germany and other members that abstained from voting."
    "But their confirmation will incentivise Chinese automakers
to shift some of their manufacturing into the EU to protect
themselves against any further tariff hikes." 
    "It's also likely to spur retaliation from China." 
     
    NATIONAL ASSOCIATION OF SPANISH MEAT INDUSTRIES (ANICE):
    "We had hoped that there was a possibility of exploring
other measures, but the result is what it is. Now, we can only
await the consequences, which we hope will not be serious for
the pork sector."
    "We trust and hope that this decision will not have a
negative impact on trade relations with China as far as the pork
sector is concerned, and that the threat of possible tariffs on
Spanish pork products does not materialise."
    
    FRENCH COGNAC ASSN BUREAU NATIONAL INTERPROFESSIONNEL DU
COGNAC:
    "The French authorities have abandoned us. We do not
understand why our sector is being sacrificed in this way." 
    
    HARGREAVES LANSDOWN HEAD OF MONEY AND MARKETS SUSANNAH
STREETER:
    "Investors are hoping that there's a greater chance they'll
be able to compete on a more even keel against their Chinese
rivals."
    "These new tariffs are likely to be a significant setback
for Chinese manufacturers, given the EU is its largest overseas
market for its EV industry. However, given how much cheaper
Chinese EVs already are, even this level of tariff might mean
they are still competitive and will give European manufacturers
a run for their money."
    "So, these extra taxes may still be a hurdle but not a
barrier to trade with the EU."
     
  

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
BREAKINGVIEWS- EV tariffs are only the first step in EU-China
war by Neil Unmack and Katrina Hamlin ed George Hay and
Francesco Guerrera     urn:newsml:reuters.com:*:nL8N3LG0HA
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Reuters reporters; compiled by Josephine Mason;
editing by Jason Neely and David Evans)
 ((Josephine.Mason@thomsonreuters.com; +44 207 542 7695; Reuters
Messaging: josephine.mason.reuters.com@reuters.net))