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Stellantis CEO: electric vehicle tariffs are a trap
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Stellantis CEO: electric vehicle tariffs are a trap
May 22, 2024 1:19 AM

MUNICH, May 22 (Reuters) - Stellantis ( STLA ) expects

a major battle with Chinese rivals in the European market for

electric vehicles and expects significant social consequences as

a result, the group's Chief Executive Carlos Tavares said on

Wednesday.

Tavares said tariffs on Chinese vehicles imported to Europe

and the United States are "a major trap for the countries that

go on that path" and will not allow Western automakers to avoid

restructuring to meet the challenge from lower cost Chinese

manufacturers.

Tavares said that tariffs would only fuel inflation in

the regions where they are imposed, potentially impacting sales

and production.

"We are not talking about a Darwinian period, we are in it,"

Tavares said at the Reuters Events Automotive Europe conference,

adding the price battle with Asian rivals would be "very tough".

The European Commission will unveil an initial decision on

potential tariffs on Chinese EV imports on June 5, the United

States has said it will impose 100% duties to bar shipment of

Chinese EVs. China has been threatening counter tariffs.

"When you fight against the competition to absorb 30% of

cost competitiveness edge in favour of the Chinese, there are

social consequences. But the governments, the governments of

Europe, they don't want to face that reality right now."

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