The arrival of Chinese car brands in Europe, the latest of which is BYD, has caused deep concern in the continent’s industry. However, in this case, the doubts go beyond the logical regret that the arrival of new competitors causes in any company. in invasion China underlies the profound disparity in the cards that both begin to play on European soil.
Carlos Tavares, the powerful chief executive of the Stellantis Group, expressed the discomfort of European firms in a speech at the Paris Motor Show in the presence of French President Emmanuel Macron. In short, Tavares advocated protectionist measures, specifically the imposition of tariffs on Chinese cars, because, in his opinion, the treatment of European brands in Chinese territory was not at all commensurate with that of Asians on the old continent.
“The European Union is open and this is unacceptable. “Chinese-speaking corporations in Europe that operate under simpler guidelines than we have here should not be helped,” the Portuguese executive noted. He was referring not only to the fact that production costs are much lower in China, for reasons that need not be detailed, but also – though not explicitly mentioned – to the fact that traditionally European manufacturers wishing to enter the Chinese market have been required to. The law on joint ventures with local brands, to name just one obstacle to their activities.
Tavares urges European leaders not to be “naive and dogmatic” and to recognize that “with legislation in favor of electric cars, they are forcing manufacturers to support a Chinese fad that threatens the European automotive industry.
“Do you want to put your mobility in the hands of the Chinese state?” – raised the tone, directly questioning the European authorities in favor of the entry of cheap electric cars from China. “It’s already too expensive to develop and manufacture electric cars for an eastern country to come and threaten our jobs,” he lamented.
To be honest, of course, Tavares admitted that Chinese manufacturers are 10 years ahead of their European counterparts in electric car production and that they also produce with greater control of supply chains, such as batteries and accumulators. Chips that are missing right and left – which allows them to reduce the price of their models to a point that other brands can’t afford.
Impact on climate and employment
For once, and rather unusually, Carlos Tavares’ analysis partly coincides with the views of the environmental organization Transport & Environment (T&E), which is known for its work. lobby In favor of the electric car in the highest European institutions. One of its latest studies shows that the percentage of sales of Chinese brands in Europe will be 11% in the first half of 2022.
As high as it may seem, this figure represents a decrease of two percentage points compared to the second half of last year. T&E concludes that “electric vehicle sales growth in the United States and [en la propia] China suggests that a lack of regulatory incentives, rather than a supply chain crisis, is the main reason behind Europe’s slow electrification efforts.
The organization claims that “slow delivery and long waiting times are not the only challenges facing the European market. Manufacturers are increasingly focusing on models premiumLeaving the mass market and with it mass employment at the risk of being dominated by foreign players”. It therefore recommends supporting affordable electric vehicles in the form of low-cost leasing, as recently proposed in France.
T&E’s senior director, Julia Poliskanova, synthesized the issue in very clear terms that go beyond the environmental field to which her subject is usually limited: “If Europe wants to maintain the competitiveness of its automotive industry, the Union must bring a strong force. Its own industry policy coincides with China and America’s strong support for electric vehicles. The continent’s climate and jobs are at risk.”
Source: El Diario
