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EU tariffs on Chinese EVs to accelerate plant closures in Europe, Tavares says
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EU tariffs on Chinese EVs to accelerate plant closures in Europe, Tavares says
Oct 17, 2024 2:41 PM

PARIS, Oct 14 (Reuters) - The European Union's duties on

Chinese electric cars (EVs) will accelerate plant closures in

Europe by local automakers, as tariffs will push Chinese

manufacturers to build facilities in Europe, exacerbating

overcapacity problems, Stellantis ( STLA ) CEO said on Monday.

Tariffs are a "good communication tool" but have side

effects, Carlos Tavares said during the Paris Car Show.

"It increases the overcapacity of the manufacturing system

of Europe. The way to avoid custom duties is to build in

Europe," he added. "You are accelerating the need to shut down

plants."

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