EU-China tariffs a hot topic at Stuttgart auto summit

The ongoing tariff war between the European Union and China was a major discussion point among visitors to Stuttgart's Automotive Management Summit, an event that brings together the biggest names in the European car business.

The dispute was among a host of challenges facing the automotive industry, concentrating the minds of delegates.

The summit theme was 'looking to the future', but Institut für Automobilwirtschaft CEO Stefan Reindl told CGTN it was the present that currently worried him. 

"We are in a crisis and it's an enormous crisis," he said. "I think we have some trouble with sales, and with the supply chain structures in the automotive industry. We must optimize the operative business of the manufacturers and the suppliers. Too many people produce too few cars."

When it comes to electric vehicles, the main issues and concerns surround pricing, while cars manufactured in Europe are significantly more expensive than those built in China.

The latter has prompted the EU Commission to push for tariffs as high as 45 percent on some Chinese EVs coming into the EU.

Brussels says subsidies given to Chinese manufacturers create an unfair playing field. In response, Beijing has called the tariffs unfair, and its Ministry of Commerce says the situation has "seriously affected" the two sides' cooperation in the automotive industry.

Recently, German Chancellor Olaf Scholz criticized the tariffs. Skoda CEO Klaus Zellmer told CGTN he agreed, warning that tariffs on Chinese manufactured EVs will end up being detrimental to the European car industry.

"We do oppose tariffs," he said. "We don't think that's the right measure because at the end of the day this is going to be an escalating mechanism where nobody benefits and competition at the end of the day, if it's fair and it's if it's free, is the benefit for consumers in terms of choice costs, innovation and so on and so forth. So we oppose those kinds of instruments."

Nic Thomas, Head of Marketing, sales and service for Changan Europe, told the summit that Chinese manufacturers have long-term plans in Europe.

"We are here to build a long term business in Europe to build a successful business in Europe," said Thomas. "I very much hope to be standing here in 10 years' time with my perfect German and telling you about how our long-term strategy was successful. 

"That is our goal and that's the benefit again of a Chinese company as it can take that long-term view but execute it very quickly once the decisions are made to execute very effectively and do so locally with local people."

The Chinese side has invited the EU to send a team to China to continue discussing an alternative to tariffs.

However, as the tariff deadline looms, Christian Ach, BMW's head of German market, told CGTN he hopes a solution can be found.

"There are still discussions, and I'm very optimistic and positive that we will get a good solution for both sides, for the Chinese towards Europe and for the Europeans towards China," said Ach.

Without that breakthrough in the next two weeks, the new tariffs on Chinese EVs will come into effect on October 31.

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