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Volkswagen's CUPRA 'at danger' from prepared EU tariffs, says brand name CEO

An electric vehicle made in China and created in Spain by Volkswagen's CUPRA brand name would be wiped out if the European Commission followed through with planned import tariffs of 21.3% on the automobile, the brand's CEO informed Reuters.

Raising the price of the Tavascan, an all-electric SUV selling for around 52,000 euros ($ 57,500), to cover the expenses was not an alternative in the existing European financial environment, said Wayne Griffiths, who heads up the SEAT and CUPRA brand names under Volkswagen's SEAT S.A. subsidiary.

Nor was moving production to another place after the company had currently purchased developing capability at Volkswagen's Anhui plant, a majority-owned joint endeavor with China's JAC Automobile Group.

Without the predicted Tavascan sales, CUPRA would miss out on EU-mandated carbon dioxide reduction targets next year and so face heavy fines, requiring it to cut output with a possible effect on work at its base in Spain, Griffiths stated.

It puts the entire financial future of the business at risk, Griffiths said, speaking from Barcelona. The intention was to secure the European vehicle market however for us, it's having the opposite impact ... We need to find a solution.

The remarks are the greatest yet by a carmaker impacted by the tariffs, highlighting worries Brussels will hurt domestic players it is attempting to safeguard through its probe of Chinese subsidies released nearly a year ago. The anti-subsidy tariffs are on top of the EU's basic 10%. duty on car imports, a procedure the Commission states is focused on. levelling the playing field and countering what it says are. unreasonable aids. Beijing has threatened to retaliate with. probes into EU imports of dairy, pork and cognac.

' A DIFFERENT ANIMAL'. The Tavascan, like BMW's electrical Mini, was initially. hit with a 38.1% tariff in Brussels' strategies, prompting demonstrations. from both business.

The tariff on both vehicles was lowered to 21.3% last month to. be consisted of in the list of companies that cooperated with the EU. probe. At the exact same time, Brussels lowered the proposed task for Tesla. , which has a huge factory in Shanghai, to 9%, the most affordable. of all the tasks, after the U.S. EV maker requested for its own. negotiated task. China has been canvassing the bloc's 27 member states to turn down. the proposed extra tariffs in an October vote.

If tasks are imposed, CUPRA can request its own worked out. duty, as Tesla has. The evaluation would last as much as 9 months. Griffiths stated CUPRA remained in talks with various levels of the. Commission and the German and Spanish federal governments to attempt to. convince them to cut or scrap the planned responsibilities.

Business representatives will take a trip with a Spanish. delegation to China in a number of weeks, he included.

A European Commission spokesperson declined to comment. German carmakers like Volkswagen are greatly exposed to possible. counter-tariffs by China on large engine car imports. China. accounts for about a 3rd of their sales. While a lot of cars and trucks sold. in China are made locally, numerous top-end designs are imported.

CUPRA decided numerous years ago to produce the Tavascan, its. second all-electric model, at Volkswagen's newly built. Anhui plant in China as a one-off to get the product to market. quickly and had always planned for the model's follower to be. built in Europe, Griffiths stated.

We're not a Chinese brand attempting to overload the European. market. Our automobiles are not for the masses. The car is not a. subsidised product, he stated. We're a various animal. That's. what we're trying to discuss.

(source: Reuters)