Mood in trade talks said to have changed as EU member states harden demands for protection against Chinese imports EU trade negotiators are heading to China for two days of crunch talks aimed at sealing a breakthrough deal tackling Beijing’s record £1bn-a-day trade surplus by curbing its exports of cheap hybrid electric cars into Europe. Trade commissioner Maroš Šefčovič and his team fly out on Wednesday and will be negotiating up to the wire in talks scheduled to start the following day and continue late into Friday. Continue reading… The…
Tag: Automotive industry
UK considering tariffs on Chinese car imports to align with EU
The UK is considering whether to impose tariffs on Chinese car imports to align itself with the EU and strengthen its case to be included in new legislation designed to protect the European manufacturing sectors including autos and chemicals. It is understood the EU has raised the question of tariffs with the UK as part of the discussions on the upcoming “Made in Europe” legislation, known as the Industrial Accelerator Act. The UK is an outlier in choosing not to put import taxes on Chinese vehicles, even as the US…
UK car industry faces ‘difficult trade-off’ between Chinese and EU markets
Britain’s car industry is grappling with a “difficult trade-off” between China and Europe, as manufacturers struggle to balance the benefits of both markets ahead of looming trade measures that could restrict UK exports to the EU. The UK is an outlier in choosing not to put import taxes on Chinese vehicles, even as the US has shut them out almost entirely, and the EU imposes duties of up to 45%. EU officials reportedly warned Andy Burnham last month that the UK must put tariffs on cheap Chinese vehicles otherwise Brussels…
Alarm bells sound in Brussels as EU sales of Chinese hybrid cars rocket
Sales of Chinese hybrid cars have rocketed in the EU in the past four and a half years, new data shows, underlining growing concerns in Brussels over the future of the European car industry. In 2022, just 659 Chinese-made fully hybrid cars (vehicles in which the petrol or diesel engine charge the motor and battery) were sold in the EU. However, after Brussels imposed anti-subsidy tariffs on fully electric cars from China in 2024, sales of hybrids have shot up to 160,662 in the first seven months of this year.…
No bailouts for Jaguar Land Rover amid reports of thousands of job cuts, says minister
The government has signalled that it will not invest taxpayers’ money to limit job losses at Jaguar Land Rover (JLR), after it emerged that the UK’s biggest carmaker is planning up to 4,000 redundancies. Before crunch talks on Tuesday between JLR, union leaders and government officials, the business secretary, Jonathan Reynolds, said it was not his job to “intervene and run businesses”. JLR, owned by the Indian conglomerate Tata Motors, told staff on Friday to expect a voluntary redundancy programme, as it tries to shore itself up against tough conditions…
Tesla recalls nearly 3m vehicles in China over door handle safety risks
Tesla and other carmakers are making a major recall of more than 4m vehicles in China over safety concerns mostly related to their door handles, according to Chinese authorities on Friday. The US carmaker is recalling about 2.98m China-made and imported EVs including Model 3, Model Y, Model X and Model S over door-handle safety risks, according to China’s state administration for market regulation. The recall, the largest this year, according to Chinese media, comes a few months after Chinese authorities said in February that starting next year, it would…
Chinese carmaker Chery to set up UK research centre
The Chinese carmaker behind the irreverently nicknamed “Temu Range Rover” is plotting further UK expansion with a major research and development centre in England. Chery, which makes the Jaecoo and Omoda car brands, said the launch of a new R&D site was “the next step in our long-term plan” for Britain as it also moves towards manufacturing its cars in the UK. Chery’s sales are growing at breakneck pace in Britain. In July, the Chery, Omoda and Jaecoo brands accounted for nearly 8% of UK market share, up from 3%…
Chinese EV sales surge to new high in Europe putting tariffs under scrutiny
Imports this year now account for 14% of the market amid claims vehicles are being dumped in the EU and UK Chinese electric car sales have risen across Europe to a record high driven by strong demand and low tariffs in the UK and a surge in buyers in Italy. Against a backdrop of claims that Chinese carmakers are “dumping” state-subsidised vehicles in the EU and UK to gain market share, the figures will give impetus to calls for quotas and higher tariffs to protect European manufacturers. Continue reading… The…
BMW to cut ‘as many as 8,000 jobs’ under pressure from Chinese rivals
BMW is planning to cut as many as 8,000 jobs in Germany, according to reports, in the latest sign of Europe’s largest carmakers reducing costs under pressure from Chinese rivals. The Munich-headquartered company has started a voluntary redundancy programme agreed with employee representatives, a BMW spokesperson said on Wednesday. The company and its works council had agreed a severance programme targeting the administration and development divisions, the spokesperson said. Production operations are excluded. BMW’s total workforce is about 160,000. Germany’s carmakers have come under intense pressure in recent years with…
Mass job cuts loom at VW as profits fall steeply on China sales slump
Carmaker expects to sell 3% fewer vehicles this year as it pushes through a programme that could eliminate 100,000 roles Volkswagen has reported a steep fall in profits and cut its revenue forecast amid a sales slump in China, as the German carmaker pushes through a brutal cost-cutting programme that includes axeing up to 100,000 jobs. VW said it expects sales revenue to fall by up to 3% this year, a reversal of a previous forecast for a 3% increase on last year’s €321.9bn (£275.3bn), because of a sales slump…