Germany Considers Increasing Tariffs on Chinese Automobiles

Following reports of Volkswagen closing several of its factories, Germany has begun discussing increased tariffs on Chinese automobiles.

Dirk Pantzer, the Economy Minister of Saxony, has called on the European Union to raise tariffs on vehicles imported from China. According to him, this could compel Chinese companies to collaborate with European manufacturers and begin local production.

This statement was made after reports emerged that Volkswagen is considering closing four factories in Germany. Among them is an electric vehicle factory located in Saxony.

Oliver Blume, Volkswagen's CEO, names Chinese automobile production in Europe and the creation of joint ventures with Asian companies as one possible solution. According to Pantzer, if Chinese companies begin production in Saxony, this would help preserve jobs and create opportunities for negotiation regarding tariff-related issues.

Chinese automakers, including BYD, are rapidly growing their sales in Europe.

Germany believes that if Chinese companies wish to operate on the European market, they should locate part of their production in Europe and participate in creating local jobs.

Source: Investing.com