Volkswagen electric car brand would be ‘wiped out’ by EU tariffs

[Pelican Press 0]

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Volkswagen electric car brand would be ‘wiped out’ by EU tariffs

Wayne Griffiths, chief executive of the Cupra brand says raising the price of its all-electric SUV is not an option

An electric vehicle brand owned by

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by proposed ********* Union tariffs aimed at China, according to a top executive at the car giant.

Models in Volkswagen’s Cupra brand are designed in Spain but include cars made in China, which would face tariffs of 21.3pc under

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Raising the price of the Cupra Tavascan, an all-electric SUV selling for around €52,000 euros (£43,800), was not an option in the current ********* economic environment, said Wayne Griffiths, who is chief executive of Volkswagen’s Seat and Cupra brands. It means Volkswagen would be unable to cover the additional costs.

Mr Griffiths said that moving production to another location was unviable because the company had already invested in building up capacity at Volkswagen’s Anhui plant, a majority-owned ****** venture with China’s JAC Automobile Group.

Without the projected Tavascan sales, Cupra would miss

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next year and face heavy fines, Mr Griffiths claimed, forcing it to cut output with a possible impact on employment at its base in Spain.

Speaking from Barcelona, he said: “It puts the whole financial future of the company at risk.

“The intention was to protect the ********* car industry but for us, it’s having the opposite effect.”

“We’re not a ******** brand trying to swamp the ********* market. Our cars are not for the masses. The car is not a subsidised product. We’re a different animal.”

The comments came a day after Volkswagen said it was

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for the first time in its 87-year history. The company is racing to cut costs amid increasing competition and the establishment of EU factories by lower-cost ******** giants.

Mr Griffiths’ remarks are the strongest yet by a carmaker affected by the tariffs, highlighting worries that Brussels will hurt the very domestic players it is trying to protect.

The new tariffs are on top of the EU’s standard 10pc duty on car imports, a measure the Commission says is aimed at levelling the playing field and countering what it regards as unfair subsidies.

The Tavascan, such as BMW’s electric Mini, was initially hit with a 38.1pc tariff in Brussels’ plans, prompting protests from both companies.

The tariff on both cars was reduced to 21.3pc last month.

At the same time, Brussels lowered its proposed duty for Tesla, which has a major factory in Shanghai, to 9pc, the lowest of all the duties, after the US electric car maker entered negotiations.

If duties are imposed, Cupra can request its own negotiated duty, as Tesla has. A review of the rate would last up to nine months.

Story continues

******* carmakers such as Volkswagen are heavily exposed to possible counter-tariffs by China on large engine car imports. China accounts for about a third of their sales. While most cars sold in the country are made locally, many top-end models are imported.

The ********* Commission was approached for comment.

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