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."