Here Once again, here is the link to the article from 5 March.
Unfortunately, the US market for Chinese cars is in danger of collapsing completely, as the US has now imposed a punitive tariff of 100 per cent (!) on Chinese cars. This means that the prices of Chinese cars in the US will double for buyers. In other words, they are unsellable.
That leaves Europe. But the EU seems unable or unwilling to impose similar tariffs. The fear that the Chinese will impose similar tariff restrictions on European cars is too great. And this also applies to diesel and petrol cars. The Chinese market is too important for European car manufacturers. VW, Mercedes and BMW, to name but a few, export around a third of their cars to China, while only around one in ten cars ends up on German roads. The situation is different for American car manufacturers. They mainly produce for the local market there.
This is a real dilemma that the EU finds itself in. What are the possible solutions?
Option 1: The customs spiral. High tariffs on Chinese electric cars lead to high tariffs on European cars, including German vehicles. These become too expensive for the Asian market. The result: exports collapse, hundreds of thousands of people lose their jobs, tax revenues fall, and there may even be large-scale company bankruptcies. As early as 5 March 2024, Focus magazine sounded the death knell for the European automotive industry, especially Opel. Click here for the article. here.
Option 2: The China Stromer glut. Without customs restrictions, Chinese car manufacturers will flood the European market with inexpensive electric cars and deal the final blow to European electric car production. Sales of electric vehicles in Germany have already slumped dramatically, ultimately due to a lack of government subsidies.
Option 3: The dismantling of e-mobility. The decision to phase out cars with combustion engines is abandoned. The result: no one buys electric cars anymore. Hundreds of thousands of Chinese electric cars can safely remain in China, and the customs stress with the Middle Kingdom is averted. The car carriers that have not yet been built do not need to be produced and do not emit CO₂ during the crossings that are not taking place.2 or other pollutants. Germans can continue to drive their beloved diesel and petrol cars, which are becoming increasingly environmentally friendly anyway. Car manufacturers, their suppliers, oil refineries and petrol station operators can look forward to a lucrative future. Jobs will be preserved, everyone will have enough income to continue sending their children to daycare, eating out at fancy restaurants and going on well-deserved holidays. Or flying. Almost like in Huxley's Brave New World.
There is only one catch. 751 members of parliament in Brussels and the vast majority of the 734 members of the German Bundestag will not want this. The green climate religion would then have to be laid to rest.
It will be interesting to see how this Gordian knot is untied.
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