Mercedes-Benz CEO Ola Källenius has called on the European Union to seek a fair and balanced resolution to the ongoing tariff dispute with China over electric vehicles (EVs). Speaking at the Shanghai Auto Show, Källenius emphasized the importance of avoiding protectionist measures, describing high tariffs as the “crudest instrument” and advocating for open market competition and innovation. The EU had previously imposed tariffs as high as 45.3% on Chinese-made EVs, affecting manufacturers like BYD, Geely, and SAIC. Discussions are ongoing between Brussels and Beijing to explore alternatives, such as minimum price commitments, to potentially lift these tariffs.

Källenius highlighted the need for a “win-win” approach, stating that economies exposed to full competition are the most innovative. He expressed hope that both the EU and China would engage in constructive dialogue to reach an equitable solution. This call reflects broader concerns within the automotive industry about the impact of trade barriers on global competitiveness and innovation.

The EU’s decision to impose additional tariffs on Chinese-made EVs has been met with criticism from various stakeholders, including German automakers like Mercedes-Benz. The European Commission’s investigation into China’s subsidies for domestic EV manufacturers has raised concerns about market distortion. However, Källenius and other industry leaders argue that protectionist measures could harm the EU’s own economic interests and hinder the transition to electric mobility.

As the deadline for the planned tariffs approaches, Källenius has urged the EU to postpone enforcement to allow more time for negotiations. He emphasized that finding a balanced solution is crucial for the EU’s long-term economic growth and its competitiveness in the global automotive market.

The outcome of these discussions will have significant implications not only for the automotive industry but also for broader EU-China trade relations. A resolution that promotes fair competition and mutual benefit could strengthen economic ties and support the global transition to sustainable mobility.

In the meantime, Mercedes-Benz continues to focus on innovation and market expansion. The company recently unveiled its new “Vision V” all-electric limousine van series, with some models to be produced in China. Källenius projects significant growth in the premium EV segment over the next few years, highlighting the importance of adapting to market demands and technological advancements.

As the EU and China continue their negotiations, the automotive industry and consumers alike will be closely watching the developments, hoping for a resolution that fosters innovation, competition, and sustainable growth in the global EV market.

(Adapted from Reuters.com)

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