Hyperdrive
VW Says Cost Cuts Not Tariffs Will Protect Europe From Chinese EVs
- Lower costs needed to compete over long term, Antlitz says
- Chinese plans for European plants will blunt impact of tariffs
The Volkswagen AG headquarters and auto plant in Wolfsburg, Germany.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
Volkswagen AG said higher import tariffs for Chinese-made EVs in the European Union will offer only a short respite, with lower costs necessary to stay competitive over the long run.
That’s because Chinese automakers are set to start making cars in Europe, according to Chief Financial Officer Arno Antlitz, who said the EU’s plan for additional barriers risks painful retaliatory actions. On Wednesday, China signaled it’s ready to unleash tariffs as high as 25% on imported cars with large engines, as trade tensions escalate with the US and European Union.