Tavares of Stellantis turns on protectionism and subsidies
According to Carlos Tavares, the “protectionism” followed by Europe in the automotive sector will result in “impoverishment”. Stellantis thinks that the duties against China are a big trap (also because it collaborates with the Chinese brand Leapmotor), even if it calls for state contributions in Italy. All the details
“Europe has two choices available” on cars, said Carlos Tavares, the CEO of Stellantis, who yesterday in Turin presented the new models for the Italian factories : one option is “protectionism, telling people that they don't have to worry", while the other is "to compete. And by competing, in the end you can win if you are the best." Tavares added that "Europe has chosen the path of protectionism for now", referring to the anti-subsidy investigation into Chinese electric vehicles, launched last September, which could lead to the imposition of duties (the conclusions are expected in the first days of June). “Is this real protectionism?”, the CEO asked; “I don't think so, I think it's just impoverishment. I think that if you don't compete you become poorer."
THE TRAP OF DUTIES ON CHINESE CARS, ACCORDING TO TAVARES
Tavares thinks that any European tariffs on Chinese vehicles, in addition to the very high ones already announced by the United States, are a "big trap" because they could fuel inflation and damage the sales of Western car manufacturers. Furthermore, China – the largest producer and largest market of electric vehicles in the world – could also decide to raise trade barriers: in recent days there has been talk of a possible increase in Chinese tariffs on car imports equipped with large displacement engines .
Last week, at a conference in Munich organized by Reuters , Tavares said that “when you fight against competition to absorb 30 percent of the cost competitiveness margin in favor of the Chinese, there are social consequences. But at this moment governments, European governments, do not want to face this reality."
According to Tavares, Chinese manufacturers are on track to sell 1.5 million cars in Europe, grabbing 10 percent of the market with a number of manufacturing plants that could reach ten.
THE JOINT VENTURE WITH LEAPMOTOR
Compared to Volkswagen and BMW, for example, Stellantis is not too exposed to the Chinese market. Recently, however, it announced that from September the company will begin selling electric vehicles made in collaboration with the Chinese manufacturer Leapmotor abroad.
The first markets reached by the Stellantis-Leapmotor joint venture are Italy, France, Germany, the Netherlands, Spain, Portugal, Greece, Belgium and Romania: in short, any European Union duties could damage floors.
WHEN TAVARES ASKED FOR SUBSIDIES
Tavares says he is against protectionism, but not state contributions. Last February, interviewed by Bloomberg , the administrator of Stellantis criticized the Italian government, claiming that "if subsidies are not granted for the purchase of electric vehicles, Italian plants are put at risk". And again: “the electric vehicle market in Italy is very, very small. It is a direct consequence of the fact that the Italian government does not subsidize the purchase of electric vehicles."
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/carlos-tavares-protezionismo-auto-unione-europea/ on Tue, 28 May 2024 10:54:53 +0000.