SAIC to get 38,1% duty in EU

[MSvirus]

Press release today saying that EU will penalize SAIC with 38,1% duty from 04. of july. Will this end MG in Europe?

 

[Matt x power]

UK will be ok though

 

[Kithmo]

There's 10% import duty and 20% VAT on cars coming from China to the UK, so 30% already.
Does the EU 38% include VAT ?

 

[Tuareg]

The EU plans to impose tariffs on all Chinese made EVs. It means used prices will get much stronger, glad my order for an Xpower is already in, makes it even more attractive with the €9000 government subsidy.

 

[jammamon]

New tariff is extra over the 10% import duty already enforced.

 

[DB Go Rex]

Heavy action to save the German car industry.

It would have made sense to match what the Chinese were doing with their 15% duty, but this will likely start escalation.

It will be interesting to see if it's enough for Chinese brands to start factories in Europe. Would need some more brand recognition for that to be viable, and it's a bit too early for the likes of Xpeng, BYD and NIO.

Apparently Tesla will also have a calculated tariff with the European Model 3 being made in China...

 

[OriginalBigAl]

Is only provisional for the short term, needs a two thirds majority vote in November to ratify. Last year in France the subsidies for Chinese EVs was ended . MG responded by slashing the costs by a almost similar amount so were still comparatively cheaper but probably still profitable. They might increase stocks here and preregister cars before the deadlines to avoid extra tariffs . Theres been a lot of new dealerships opened in the last two years, some may not survive leaving current owners with either long trips to open ones for service and repairs, or worse case scenario no service at all .
Lets hope its sabre rattling and what will end up will be very much watered down. SAIC were reported as going to build a European factory but that won't be up and running for a while, and even then if its Chinese government backed, would that still flaunt the anti- subsidy debate.?

 

[Conrad3]

Not just Chinese makers either also includes BMW cars that are built in China

 

[DB Go Rex]

Yes, it's to protect European jobs.

 

[GranTurismoEra]

China will do the same in kind to European vehicles in a market almost as large as the entirety of Europe. Despite their superior public transportation car sales are still key.

Good luck VW, BMW and Mercedes. They've already been advised against such decisions by German automakers. Also more and more Chinese are buying locally made cars.

UK's answer to that is the 40k roadtax penalty to get manufacturers on similar pricing levels, which is more difficult. Setting up factories in EU is a good idea but it doesn't stop special treatment of Chinese manufacturers if you know what I mean.

Its done to protect the EU market and jobs. Lets face facts no ones buying Mercedes EV, Mercedes are having a rethink as well as Ford. BMW EVs are taking a steep hit as well as Taycans. Time for EU manufacturers to get real and bring the prices down.

 

[DB Go Rex]

UK's answer to that is the 40k roadtax penalty to get manufacturers on similar pricing levels, which is more difficult. Setting up factories in EU is a good idea but it doesn't stop special treatment of Chinese manufacturers if you know what I mean.

Not sure what you mean here...the 40k thing is a blanket VED uplift for all cars above £40K list regardless of manufacturer origin...

 

[GranTurismoEra]

Not sure what you mean here...the 40k thing is a blanket VED uplift for all cars above £40K list regardless of manufacturer origin...

Yeah because the EVs are too expensive. If they drop their prices they could compete with the Chinese luxury EV segment. EU manufacturers have always overpriced their cars hence 47% depreciation by year 3. It was too high to begin with.

EU manufacturers want to continue charging crazy prices and not be competitive with the competition. Citing Government subsidies as an excuse

 

[mGizmo]

Yeah because the EVs are too expensive. If they drop their prices they could compete with the Chinese luxury EV segment. EU manufacturers have always overpriced their cars hence 47% depreciation by year 3. It was too high to begin with.

EU manufacturers want to continue charging crazy prices and not be competitive with the competition. Citing Government subsidies as an excuse

European and US manufacturers will say they simply don't have the huge profit margins people seem to think they do. (Full disclosure: I work for Ford. I rarely if ever speak for them!)

 

[JonnyG]

How will new EU tariffs on Chinese electric vehicles work?

The tariffs are aimed at countering the alleged state support handed to China’s car manufacturing industry

www.theguardian.com

 

[Brusque]

UK will be ok though

The UK will follow EU policy in this respect, which is in line with wider Western trade policy (US has 100% tariffs). Its up to the manufacturer/importer whether they pass that onto the consumer. Buick, for instance, already imports Chinese made models into the US, and 100% absorbs the tariff.

While the UK might be currently outside of the EU, the UK workforce does contribute to the European automotive workforce. What can protect EU car workers can also protect British workers who are part of the supply chain.

SAIC can choose to reduce its dependance on state subsidy. It is a publicly listed company after all.

 

[GranTurismoEra]

European and US manufacturers will say they simply don't have the huge profit margins people seem to think they do. (Full disclosure: I work for Ford. I rarely if ever speak for them!)

Understandable but those bonuses aren't getting less for company CEOs Lol...Well as long as UK come up with a more lenient strategy. As we know its heading towards high tarrifs. Although British auto industry is nearly non existent.

Eventually it will he reviewed by UK.

 

[Anon70]

Expect there will be all sorts of work arounds as there are for most things. For manufacturing white goods the made in sticker could be attributed to where the last bolt was tightened on the product, not where all the components were sourced.

 

[m4rmite]

I know, to protect our billions in profit we'll get the government's to introduce a tariff.
Who do those pesky Chinese think they are, selling cars that people want to buy in our turf.

https://uk.motor1.com/news/715061/ferrari-porsche-most-profitable-auto-makers/

The consumer is the lower.

 

[DB Go Rex]

I know, to protect our billions in profit we'll get the government's to introduce a tariff.
Who do those pesky Chinese think they are, selling cars that people want to buy in our turf.

https://uk.motor1.com/news/715061/ferrari-porsche-most-profitable-auto-makers/

The consumer is the lower.

That's one way to read it.

The other way is that the car industry in Germany is one of the larger parts of the economy. Destroy that with a flood of Chinese imports and you have a serious problem in Germany.

 

[m4rmite]

That's one way to read it.

The other way is that the car industry in Germany is one of the larger parts of the economy. Destroy that with a flood of Chinese imports and you have a serious problem in Germany.

Or back the other way round.
Companies around the world are quite happy to have things made in china, yet charge top price to customers and reap the fatter profits.

Now, what happens if China take the hump and tariff everything sold to China , or think sod it - lets raise our prices to everything we sell to the EU and USA?

Now regards the German car industry, how many billions in profit are they making out of their EU and US customers?
So much for setting a competitive price for their customers.