EU to impose multibillion-euro tariffs on Chinese electric cars (thread bans see post #1)

No it's not. As I said in my last post the Chinese will just price there cars even lower coming here so these tariffs will be meaningless to the price of Chinese vehicles coming here. They can afford to do that. The Chinese cars will still be cheaper than any from the European Legacy makers and they will continue to suffer while the Chinese benefit. But sure The EU will make some money from it now too so all good.

you haven’t explained how they’ll just keep

Lowering the prices. ……

They'd hardly avail of state aid now would they in order to manipulate the market? 😀

I wonder how China will respond. It's no secret BMW, Audi and VW make billions from the Chinese market and have partnerships with Chinese auto makers. Sure the top end BMWs are designed more for the Asian market than European at this stage.

This could be a double edge sword.

Unlikely. BYD is in the top 10 car makers globally and the biggest EV maker. They arent going anywhere soon.

As @Gumbo posted earlier, BYD are currently building a factory in Hungary. Recent reports also state they are looking for a location for a potential second factory.

As has been mentioned in this thread already, the Germans are not supportive of this measure.

This was part of the press release from the German Automotive Industry body, the VDA published yday.

The German automotive industry is in favour of free and fair trade. As a matter of principle, any protectionist measure, including additional tariffs as well as unjustified and market-distorting subsidies, restricts free trade and harbours the risk of trade conflicts that are ultimately detrimental to all sides. The potential damage that could be caused by the measures now announced may be greater than the potential benefits for the European - and in particular the German - automotive industry.

The European automotive industry is going to be decimated anyway as EVs are far less complex machines to manufacture and hardly any precision machining is required.

And quite frankly I don't care too much for the European, or rather largely German automotive industry as it's lied and cheated without consequence here in Europe.

The truth is the European Market has been caught badly behind as the Chinese started investing in EVs and batteries 15 years ago to get their deserved market and technological advantage that they have today. Volkswagen on the other hand have decided to divert €60bn from their EV budget back into ICE development. They deserve their loss of market share.

The way the tariffs themselves have been set it's about geopolitics and not trying to find a fair price. Seemingly the Commission think that €60k+ is the fair price for the Byd Seal.

The irony here is that you're railing against what you see as a bailout for one set of manufacturers when the root of the issue is state funding for another set.

EV's aren't "far" less complex to produce. Its swings and roundabouts really. I had the frunk tub out of a Mustang Mach E the other day, and its every bit as complex as any other car I've seen. (A major part of the drivetrain had failed).

Tesla (and others it must be said) ripping every bit of luxury out of their cars interior in order to compete on price tells you where complexity and cost savings are most easily found.

Every single OEM was cheating emissions tests - VW were really just the scapegoats. Do you believe that the Chinese have been, and always will be squeaky clean?

For Germany, whose biggest trading partner is China, any sanctions range far beyond just the automotive industry.

The rest of the press release effectively calls on the Chinese to limit their subsidies instead - so they understand the issue, just see a different solution.

Today's announcements make it clear that the extent and nature of subsidies in China are a challenge. The Chinese government is therefore now also called upon to signal its willingness to engage in dialogue in view of the facts

Where have you seen the announcement on the €3 monthly increase for electricity ?

My take is, German industry is very averse to change, they don't like to innovate and they certainly don't like to offer any great value.

They will just rest on their laurels, jack up the prices and produce the same stuff as they have.

Germany used to produce a lot of stuff like cameras , TVs, hi-fi, motorbikes and so on, but frequently get decimated due to complacency, high pricing and failure to adapt to the market.

They know they will get bailed out, so I'm not too upset about the Chinese.

I see your point, but I have no faith that German industry has any interest in innovation and offering value for money.

20% on geely - does that mean volvos will go up then? 24k on top of already mad 120k ex90 would be almost 150k... Ffs that would be laughable!

Meddling with the market always ends in failure... history shows that multiple tines

Obviously? There is plenty of domestic competition in China. Chinese government subsidy or not makes no difference, the strongest, most ruthless Chinese companies will produce the best and cheapest cars. Protecting our own (EU) lazy incumbents who are unwilling and unable to compete is not of benefit to the consumers over here. And it is utterly pointless as it is merely postponing the inevitable. A total waste of time and a hindrance to world trade. Which benefits everyone in the world. Now there is a real bit of economic theory for you that few economists disagree on.

the Chinese are the ones metalling. The tariffs are to balance it out.