MUNICH (Reuters) – Stellantis expects a tough battle with Chinese rivals in the European electric vehicle market and expects significant social impacts as a result, group Chief Executive Carlos Tavares said on Wednesday.
Tavares said tariffs on Chinese cars imported into Europe and the US are a “major trap for countries going down this path” and will prevent Western automakers from avoiding restructuring to meet the challenge from cheaper Chinese manufacturers.
Tavares said the tariffs would only contribute to inflation in regions where they are imposed, potentially affecting sales and production.
“We are not talking about a Darwinian period, we are in one,” Tavares told the Reuters Events Automotive Europe conference, adding that the price battle with Asian rivals will be “very tough.”
The European Commission will release an initial decision on potential tariffs on Chinese electric vehicle imports on June 5. The United States said it would impose 100% tariffs to ban the supply of Chinese electric vehicles. China threatens counter tariffs.
“When you fight competition to absorb 30% of cost competitiveness to the Chinese, there are social consequences. But governments, European governments, they don’t want to face that reality right now.”