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Tang Weishi: China's electric vehicles are the biggest threat to European car enterprises

Publish Date: 2022.10.29

"I think Europe does not need Euro 7 emission standards, which will transfer some of our R&D efforts to technologies that are not needed, while our Chinese competitors seize the market with electric vehicle technology."

According to foreign media reports, following last week's appeal to the European Union to raise the import tax on Chinese cars and threatened to withdraw from the joint venture in China, Stellantis CEO Tang Weishi Carlos Tavares made another speech about Chinese cars at the auto industry conference in Berlin.

"Why should we use resources for technologies we want to ban?" He said that the uncertainty of the future of European automobile emission regulations has brought additional advantages to Chinese competitors. It is believed that the upgrading of Euro 7 standards on the regulation of fuel vehicle emissions "deviates from the main goal of electrification".

唐唯实:中国电动车是欧洲车企的最大威胁

Recently, with the successive failures of Stellantis Group's brands in the Chinese market, Tang Weishi has paid close attention to the competition from Chinese automobile enterprises. He said that the biggest challenge faced by European auto companies was the risk of falling behind their Chinese competitors, which exceeded the supply of chips and batteries.

At the Paris Auto Show earlier this month, Tang Weishi called for a relaxation of the 2035 ban on fuel vehicles in Europe, and warned that if fuel vehicles were banned before the advent of cheap electric vehicles, social unrest would ensue. He predicted that it would take five to six years for a reasonably priced electric vehicle.

The threat theory of Chinese cars is not Tang Weishi's view of a car company. The French and German governments are discussing supporting the development of local electric car companies to deal with the offensive of Tesla and Chinese electric cars from the United States.

Especially after the United States proposed subsidies for electric vehicles in North America, France and Germany had to discuss plans to protect European electric vehicle enterprises. They agreed that the EU needs to do more to promote the development of local industries. Makron said that German and French leaders have reached an agreement on the idea of ensuring that the European Union subsidizes European cars.

"China and the United States are protecting their industries, but Europe is still fully open to them, and we must change."

However, it is not so simple for the EU to adopt higher tariffs on Chinese cars. First of all, the German auto industry is heavily dependent on the Chinese market, and bilateral trade agreements need to be renegotiated. This conflicts with existing EU rules and WTO agreements, which may lead to trade wars. This is not a wise move for Germany, which has millions of cars a year in China.

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