Carmakers respond to EU tariffs on Chinese-made EVs
Technology
Carmakers respond to EU tariffs on Chinese-made EVs
(Reuters) - With the European Union imposing extra duties on Chinese-made electric vehicles from Friday, some carmakers have decided on countermeasures.
Analysts expect other manufacturers producing in China will also pass on part of the extra cost to consumers.
The Chinese carmaker, which faces the lowest tariff hike of 17.4% on top of the current 10% duty, has not decided yet whether to hike prices on EVs sold in the European Union, sources close to the company told Reuters.
There would be no decision before July 4, when provisional duties take effect, sources added.
CHERY AUTO (CHERY.UL)
The Chinese automaker said its planned EV production in Spain, set up through a joint venture with Spain's EV Motors, should help offset tariffs on imports into the EU.
Production at the Barcelona-based site is expected to start by the end of the year, Charlie Zhang, vice president of Chery Auto, said.
The site is not big enough for the carmaker's medium- and long-term plans in Europe, Zhang added, saying the company was looking for a possible second site.
MG
A spokesman for MG, produced by China's SAIC Motor, told Reuters in France that the automaker had enough vehicles in stock "to last until November without increasing prices", referring in particular to the MG4 model.
Lufthansa finally won EU approval to buy a stake in ITA Airways on Wednesday.
MG's country manager for Italy, Andrea Bartolomeo, told Reuters that for the moment the brand was not planning any price action on its car line-up in the country.
The Chinese automaker said it may adjust the price of its cars in Europe as a result of the preliminary tariffs. It added it hoped to resolve with the EU before the measures become definite in November.
NIO is facing a tariff of 20.8% on its EVs.
POLESTAR
After posting a first-quarter operating loss, the Swedish carmaker, owned by China's Geely, said it would need to take "mitigating measures" to offset tariffs and pressure on car prices.
Such steps could include cost reductions across its supply chain, but not further job cuts, a company spokesperson added.
TESLA INC
The carmaker plans to increase the price of its Model 3 to compensate for the higher cost at European borders as a result of the tariffs.
