EU Faces Call to Widen Tariffs on Chinese Hybrid Cars

Germany's Vice Chancellor Lars Klingbeil has urged the European Union to expand tariffs on Chinese imports to include hybrid cars. He argues that German automakers are under threat from Chinese subsidies, advocating for stronger trade measures and local-content rules to protect domestic industry.

Germany's Vice Chancellor Lars Klingbeil has called on the European Union to broaden tariffs on Chinese imports to encompass hybrid cars. During a speech at Volkswagen's Wolfsburg headquarters, Klingbeil emphasized the threat posed by Chinese manufacturing subsidies to local automakers like Volkswagen.

Klingbeil, who also serves as finance minister, urged the EU to develop new local-content regulations and introduce tariffs on Chinese-made plug-in hybrid cars. The statement came amidst a significant restructuring at Volkswagen, aiming to cut costs in the face of competition.

Amidst the ongoing transformation, labor representatives claim that merely reducing costs will not save Volkswagen, pushing for protective measures against lower-priced Chinese cars. The European Commission is currently evaluating its trade practices with China, considering broader tariffs on electric and hybrid vehicles under 'Made in Europe' guidelines.