Volkswagen executives say reducing costs can protect European tram tariffs without essential effect
[Smart Car News] Recently, European Commission President Von der Leyen hinted that it would be possible to impose higher import tariffs on Chinese electric vehicles and proposed a "tailor-made" strategy, claiming that the tariffs would be commensurate with the degree of damage. However, Arno Antlitz, chief financial officer of Volkswagen Group, expressed reservations about this in an article. He believed that the move would not fundamentally improve the competitiveness of European car companies in the field of electric vehicles.
Antlitz stressed that European car companies must enhance their cost competitiveness in the next two to three years. "I am skeptical whether tariffs can really bring about the expected effect." He believes that this is a critical period for European car companies to improve their cost competitiveness in the next few years. By reducing costs, it can not only improve the cost performance of electric vehicles, but also ensure that car companies obtain sufficient profit margins to provide financial support for future transformation and expansion.
Thomas Schmall, another executive of the Volkswagen Group, also expressedcardsharksA similar view. In an interview with the media, he said that if German car companies do not speed up, they will face survival difficulties. "Now, the survival of a company is no longer scale, but speed." He emphasized that quickly adapting to market changes and improving production efficiency and quality are the key to ensuring the sustainable development of enterprises.
Chinese automakers have a cost advantage of 30% or more compared to European competitors, according to U.S. business consulting firm Rhodium Group. This advantage has made China's electric vehicle share in the European market increase year by year, from 16% in 2022 to 19% in 2023. This trend shows that European car companies need to work harder to improve their competitiveness when facing competition from Chinese car companies, rather than just relying on tariffs and other means to protect the market.
(This article comes from Mobile China)