Global automaker Stellantis has criticized President Joe Biden’s decision to impose a 100% tariff on Chinese-made EVs imported into the United States, saying it will sell cheap electric vehicles made by its Chinese partner Leap Motors to the UK. It is planned to be sold in Europe, including Europe.
Stellantis, which owns brands such as Fiat, Peugeot and Vauxhall, will start selling two Leap Motor models in September priced at less than €20,000 (£17,200). Sales in the UK will begin in March 2025.
Stellantis CEO Carlos Tavares said the move would allow Europe to benefit from a wave of Chinese cars flowing into Europe, adding that the U.S. could avoid high tariffs to protect its industry. , and strongly condemned protectionism.
Biden announced on Tuesday that he would impose 100% tariffs on Chinese-made electric vehicles to protect American industries that lag behind China and Europe. Tavares said the tariffs would increase U.S. inflation, making it a major political concern before November’s presidential election.
China leads the world in the production of battery electric vehicles, making it the world’s largest electric vehicle market. Dozens of Chinese manufacturers have begun selling cars in Europe, including BYD, which competes with Tesla as the world’s largest electric car maker.
European and U.S. automakers are rushing to catch up with China’s large number of EV makers, who often benefit from direct government support, lower labor costs and China’s dominance in the global battery supply chain. ing.
Tavares described the partnership with Leap Motor, which is likely to accelerate a surge in China’s battery vehicle sales, as a pragmatic and “opportunistic” move to benefit from the rise of Chinese manufacturers.
“Whether I like it or not, they’re taking market share away,” he said. “What I can do is take advantage of that dynamic.”
Stellantis also owns major American brands such as Chrysler, Jeep and Dodge, but Mr. Tavares strongly opposed Mr. Biden’s measures to protect American manufacturers. Tavares said three auto “bubbles” have been created through trade barriers in the United States, Europe and China.
He said tariffs “ultimately just cause more inflation within the bubble.” “Protectionism has many drawbacks. They do not appear immediately. They appear one after another.”
After newsletter promotion
Tavares acknowledged that if the EU also decides to impose tariffs, the situation for Chinese cars in Europe could change. The EU is investigating whether Chinese-made electric cars are being dumped in Europe, which could lead to tariffs and other countermeasures.
Stellantis will own 51% of Amsterdam-based Leap Motor International, and Hangzhou-based Leap Motor will own 49%. Leapmotor was founded in 2015 by electrical engineer Zhu Jiangming. Stellantis previously invested in Leap Motor in a deal agreed in October.
The partnership will expand Leapmotor sales to India and the Asia-Pacific region, the Middle East, Africa and South America starting in the fourth quarter of 2024.
