All posts by Francis Mitterrand

News

EU introduces additional tariffs on vehicles from China

In September 2023, European Commission President Ursula von der Leyen announced that the EU is launching an investigation into the privileged position of electric vehicles produced in China due to subsidies. The investigation showed that the Chinese government subsidized cars exported to Europe in various ways, and in response the EU is considering the introduction of additional tariffs.

For a long time, Europe was looking for a way to protect domestic producers. Some suggested joining forces against the Chinese, such as the head of the Renault Group, Luca de Meo. It seems that the temporary decision on additional tariffs is the EU’s first move to protect domestic producers.

According to Automotive News Europe, the temporary tariff rates would apply from July, and European importers must report imports of Chinese electric vehicles through customs registrations. This means that retroactive customs clearance is inevitable.

The investigation also showed that imports from China increased by 14 percent (177,839 vehicles) compared to 2022, and if it continues, it is not doubtful that it could negatively affect employment and overall production. The Chinese Chamber of Commerce in the EU said it was disappointed by the decision and that the increase in imports was a reflection of the growing demand for electric vehicles.

Manufacturers are trying to resist the increasingly rapid Chinese conquest of the European market, and one of the ways is to continue producing cars with internal combustion engines. In February, Luca de Meo stated that Europe is facing major challenges and that the alienation and disorientation of the European automotive industry will lead to a structural trade deficit for Europe. He also warns that the phase-out of internal combustion engines, which is planned for 2035, could mean a decrease in the competitiveness of the European car industry. According to him, ICEs have been a protective barrier for Europeans for years, and now with the development of electric cars and the increased need for batteries, that protection is disappearing because the Chinese control 75 percent of global battery production.

Mercedes and Škoda have already announced that they will not give up ICE as long as there is demand. Other companies are expected to follow this path as well.

Source: Automotive News Europe

News

Volkswagen faces two lawsuits over Felicity Ace sinking

Two years ago, we witnessed a fire on the transport ship Felicity Ace, which was carrying 3,965 vehicles. The fire was caused by a lithium-ion battery in one of the Porsche cars. The ship sank and all the vehicles went to the bottom of the sea, including 1,100 Porsches, 189 Bentleys, while the rest were Volkswagen, Audi and Lamborghini, including electric models. Among the cars were 15 Lamborghini Aventador cars, which Lamborghini stopped producing. Now, two lawsuits have been filed against Volkswagen.

The company Allianz and the operator of the cargo ship Mitsui OSK Lines sued Volkswagen, and the lawsuit was filed more than a year ago, but the development of the situation was stopped due to discussions about another lawsuit in the court in Brunswick, Germany. According to documents related to the original 2023 lawsuit, the two parties accuse Volkswagen Group of withholding information about the risks associated with transporting electrified cars. In addition, the lawsuit filed in the Stuttgart court alleges that VW did not provide the necessary precautions for the safe transport of the car.

In the meantime, an incomplete list of cars that were on the transport ship was published: Audi A5 Convertible (84), Audi A5 Coupe (43), Audi A5 Sportback (147), Audi E-Tron (121), Audi Q3 ( 297), Audi Q3 Sportback (144), Bentley Bentayga (77), Bentley Continental GT (38), Bentley Continental GTC (50), Bentley Flying Spur (25), Lamborghini Aventador (15), Lamborghini Huracan (20), Lamborghini Urus (50), Porsche (23 made in Zuffenhausen, 19 in Leipzig and 126 in Bratislava), Volkswagen Caddy (47), Volkswagen Golf (199), Volkswagen ID.4 (159), Volkswagen T6 (116), Ford Mustang GT (year 2015), Porsche 718 Boxster GTS 4.0, BMW 750i (year 2007), Honda Prelude SiR (year 1996), as well as Land Rover Santana (year 1977) built in Spain under license from Land Rover and using Defender parts . When it comes to the value of the ship’s cargo, the estimated value of the destroyed cars is around $155 million.

How both lawsuits will end and whether both sides will be able to come to an agreement remains to be seen.

Source: Bloomberg

News

Škoda will continue to develop ICE and hybrid cars

Last month, Mercedes announced that it will continue to develop ICE and hybrid cars in the future, and it seems that Škoda will follow the same path. At least as long as there are buyers who choose this type of vehicle.

The growth of demand for electric cars in the world is on the rise, however, most European car manufacturers are struggling with competition, which, supported by government subsidies and lower labor costs, offers cars at lower prices. This forces most of the world’s manufacturers to continue offering cars with ICEs.

“We will offer our customers everything they are looking for, from diesel and petrol engines, through mild hybrids or plug-in hybrids, all the way to electric vehicles. From our point of view, this is not about competing for the latest internal combustion engine, but about putting the desire of our customers in the center of attention. Our position, but our attitude is as reasonable as the one Škoda has accustomed us to,” said Chairman of the Board of Management of Škoda Klaus Zellmer to the Spanish motor.es.

Although EU regulations are forcing manufacturers to switch to fully electric cars, it is the customers who set the speed. A large number of them still do not trust electric cars and choose ICEs or hybrids. In addition, under the pressure of the current situation with Chinese cars that are rapidly conquering the European market, Renault Group head Luca de Meo suggests that European manufacturers join forces to protect the European market.

Last month, Luca de Meo stated that Europe is facing major challenges and that the alienation and disorientation of the European automotive industry will lead to a structural trade deficit for Europe. He also warns that the phase-out of internal combustion engines, which is planned for 2035, could mean a decrease in the competitiveness of the European car industry. According to him, ICEs have been a protective barrier for Europeans for years, and now with the development of electric cars and the increased need for batteries, that protection is disappearing because the Chinese control 75 percent of global battery production.

“Speed is important against the Chinese. We are in an uncertain world. In the past, when we had cars with internal combustion engines, we could predict what was coming. Now, if you take four or five years to react, it is too late,” said de Meo.

Source: motor.es, Automotive News Europe, Škoda