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."