Daily Management Review

Mercedes-Benz CEO urges the EU to cut import duties on electric cars from China


Ola Kallenius, CEO of the Mercedes-Benz Group, has urged the European Union to reduce import taxes on Chinese electric vehicles rather than attempting to shield European producers.

public domain pictures
public domain pictures
“Don't bring up the duties. I believe that we should take the opposite stance and reduce the tariffs that are already in place," Mr. Kallenius told to the Financial Times.

The European Commission began looking into Chinese electric car makers in September of last year, and the agency started a process in October to shield the EU market from unfair competition from Chinese producers.

An EC statement claims that the regulator obtained sufficient data to identify Chinese automakers' receipt of covert government subsidies as a means of supporting the import of electric vehicles from China. European authorities contend that this undermines the "already vulnerable" European auto industry by enabling Chinese businesses to sell electric automobiles at a large discount to their European rivals.

There is a 10% duty currently applied on Chinese electric vehicles. European automakers aim to produce electric cars locally for the Chinese market because they pay 15% for exports to China.

source: ft.com