Post by account_disabled on Feb 22, 2024 3:48:30 GMT -5
Before last week's announcement of an anti-subsidy investigation into Chinese electric vehicles from Brussels, German auto industry executives had heard that a move was in the works. "We knew something was going to happen, but not that it would be announced in such a political way," said one industry expert. The EU move was putting German carmakers, which control a fifth of the Chinese market, in a precarious position, the person added. There is now widespread concern in Germany that Beijing, which has become embroiled in a trade war with the United States, could unleash its own punitive measures against European carmakers. Brussels' move comes as investors already question German automakers' dependence on China. BMW and Mercedes-Benz have had great success in China with their premium brands, loved by wealthier Chinese customers, as has Volkswagen, which sells more cars in the world's largest car market than any other company.
A third of BMW's car sales last year were in China, while the equivalent figure at Mercedes-Benz was 37 percent and almost 40 percent at Volkswagen. For German automakers, the main Pakistan Phone Number concern is a retaliatory increase in tariffs on European cars imported to China. The companies also have large local manufacturing operations, which could provide Beijing with another front to tighten the screws. Gregor Sebastian, an analyst at the Mercator Institute for China Studies, said Germany's high-end brands were the most likely to suffer new Chinese import tariffs, as most of the cheapest cars are already produced in China. "A lot of the foreign auto production or foreign auto industry in China is actually very localized, but the exception is really the upper premium segments," he said.
The German company most exposed to higher Chinese import tariffs would be Mercedes-Benz, according to Stifel analyst Daniel Schwarz, who noted that the company imports about 20 percent of its cars sold in China, compared with a figure close to 10 percent. percent for Volkswagen and BMW. However, German automakers with large local operations are also uncomfortable. The growing tensions between Brussels and Beijing come as VW struggles to remain relevant in the country whose auto industry it helped build in the late 1970s. Its flagship vehicle, VW, was recently dethroned by BYD as the best-selling brand in China . New electric models from Audi and Porsche, the group's main profit generators, have also been delayed by problems at VW's software arm, Cariad. Despite calls from Berlin for its car industry to reduce its dependence on China, VW has announced investments in the country worth almost €5 billion last year.
A third of BMW's car sales last year were in China, while the equivalent figure at Mercedes-Benz was 37 percent and almost 40 percent at Volkswagen. For German automakers, the main Pakistan Phone Number concern is a retaliatory increase in tariffs on European cars imported to China. The companies also have large local manufacturing operations, which could provide Beijing with another front to tighten the screws. Gregor Sebastian, an analyst at the Mercator Institute for China Studies, said Germany's high-end brands were the most likely to suffer new Chinese import tariffs, as most of the cheapest cars are already produced in China. "A lot of the foreign auto production or foreign auto industry in China is actually very localized, but the exception is really the upper premium segments," he said.
The German company most exposed to higher Chinese import tariffs would be Mercedes-Benz, according to Stifel analyst Daniel Schwarz, who noted that the company imports about 20 percent of its cars sold in China, compared with a figure close to 10 percent. percent for Volkswagen and BMW. However, German automakers with large local operations are also uncomfortable. The growing tensions between Brussels and Beijing come as VW struggles to remain relevant in the country whose auto industry it helped build in the late 1970s. Its flagship vehicle, VW, was recently dethroned by BYD as the best-selling brand in China . New electric models from Audi and Porsche, the group's main profit generators, have also been delayed by problems at VW's software arm, Cariad. Despite calls from Berlin for its car industry to reduce its dependence on China, VW has announced investments in the country worth almost €5 billion last year.