May 27, 2024 – According to a report by Bloomberg, Arno Antlitz, the Chief Financial Officer of Volkswagen, stated this week that imposing higher import tariffs on Chinese-made electric vehicles by the European Union would only provide a “temporary breather.” In the long run, he emphasized, cost reduction remains the essential condition for maintaining competitiveness.
Antlitz declared, “We must take advantage of the next two to three years to become more competitive in terms of cost. It is highly questionable whether the current tariff-related discussions are heading in the right direction.” He believes that cost reduction will not only enhance the cost-effectiveness of electric vehicles but also ensure substantial profits for the company, funding its future transformation.
Meanwhile, Thomas Schmall, a board member at Volkswagen, expressed at an automotive event in Munich that “survival today is no longer about scale, but about speed,” echoing the sentiments of Antlitz.
Similarly, Carlos Tavares, the CEO of Stellantis, also stated at the conference that automakers “don’t have much time” to adjust their businesses and rely on eliminating “regulatory chaos and backyard bureaucracy.”
Citing data from the Rhodium Group, a U.S. business consulting firm, reports indicate that Chinese automakers have a 30% or greater cost advantage over their European counterparts. In 2022, Chinese electric vehicles accounted for 16% of the European electric vehicle market share, which increased to 19% in 2023.
Previously, BMW CEO Oliver Zipse also opposed the EU’s plan to impose additional tariffs on Chinese electric vehicles, stating that such a move would only “hurt oneself.” Zipse believes that “Europe’s automotive industry does not need trade protection.” He further added, “We don’t think our industry needs protection.” Conducting business globally, he explained, provides industrial advantages to major automakers, and “introducing import tariffs could easily jeopardize this advantage.”
