VAUXHALL OWNER TO SELL CHEAP CHINESE ELECTRIC CARS IN BRITAIN
The owner of Vauxhall is to sell cheap Chinese electric cars in Britain as it hit out at a decision by Joe Biden to impose tariffs on cars imported from China to the US.
As part of a joint venture with Chinese carmaker Leapmotor, Stellantis will launch the Leapmotor T03 supermini and the C10 SUV in mainland Europe from September and in the UK from March next year.
The debut of the T03, which has a range of about 170 miles, represents a major challenge to rival European car makers, as they brace for tough competition from low-cost Chinese brands.
In China, the compact city cars have proved popular with drivers and sell for as little as 49,900 yuan (£5,500) each. Stellantis expects they will retail for under €20,000 (£17,200) in the UK.
Their plans were unveiled as the Biden administration confirmed it was quadrupling US import tariffs on Chinese electric vehicles to 100pc, with the White House also hitting other Chinese goods such as solar panels, semiconductors and battery components.
Carlos Tavares, chief executive of Stellantis, accused Mr Biden of “very strong protectionism” on Tuesday, adding that tariffs would simply push up the price of EVs for consumers.
He said: “Protectionism has a lot of drawbacks.”
The White House said the measures were designed to defend US businesses from unfair competition, amid fears that Chinese companies are poised to flood western markets with cheap products.
A senior White House official said: “China is producing at a rate and with a trajectory that’s far in excess of any plausible estimate of global demand.
“That is going to flood the global market with supply that undercuts our ability to build productive capacity at home and leaves all of us across the world more vulnerable to economic coercion.”
With the Chinese penetration of the US car market already extremely low, the measures are expected to ensure it remains a no-go area for brands such as Leapmotor.
It will also put pressure on the European Union to follow suit, along with the UK, as the bloc mulls whether to hit Chinese manufacturers with its own trade tariffs.
The European Commission is investigating claims that China’s electric car industry has benefitted from massive state subsidies, and some analysts believe the refusal of firms including BYD, SAIC and Geely to hand over certain data may make trade sanctions more likely.
It is thought that UK officials are waiting for the outcome of the investigation before making any move of their own, although a Whitehall source stressed the Government had received no complaints about the issue from car makers to date.
Stellantis and Leapmotor have vowed to launch at least one new car “every year” for three years, with the aim of getting to a product lineup of three hatchbacks and three SUVs by 2027.
At a press conference in Hangzhou, China, Mr Tavares said: “Whether I like it or not, Chinese manufacturers are grabbing share in Europe.
“I am trying to be opportunistic and leverage a dynamic that is already there.
“We have to move very fast and very aggressively.”
A government spokesman said: “We already have robust protections in place, including numerous trade remedy measures, to protect UK businesses from unfair international trading practices that threaten our prosperity and security.
“UK industry should contact the independent Trade Remedies Authority if they have concerns, and we always stand ready to look at any recommendations the TRA provides us”.
2024-05-14T17:56:47Z dg43tfdfdgfd