Germany Urges EU Action Against China to Defend Carmakers

RegulationGeopoliticsIndustry Impact 4
โดย Yahoo Finance·DEEU·Read original
Summary · why it matters

German Finance Minister Lars Klingbeil called on the European Union on Thursday to step up action against what he called China's unfair trade practices in order to protect Germany's struggling carmakers. Speaking during a visit to Volkswagen's headquarters in Wolfsburg, Klingbeil said Berlin would press Brussels for concrete measures in areas including plug-in hybrids and local content requirements, adding that Germany cannot be naive in its dealings with China and needs a clear signal at a European level. Volkswagen staff representative and supervisory board member Daniela Cavallo backed demands for higher tariffs on Chinese-made hybrids, saying the company faces enormously tough, difficult and unfair competition with China, while Olaf Lies, leader of the German state of Lower Saxony, a major Volkswagen shareholder, said Germany still needs China as a partner but must have the same rules as those applied there. Since 2024 the EU has levied higher tariffs on Chinese-made electric cars, alleging they benefit from unfair state subsidies, and calls have grown for those levies to be extended to hybrid vehicles. Volkswagen recently announced plans to axe a further 50,000 positions globally, taking total projected job cuts to 100,000 in the coming years, or around 15 percent of its workforce, and the IG Metall union has organised nationwide protests for Monday, expecting around 100,000 workers to participate across the country at major manufacturers and suppliers.

Impact on stocks 4

Consumer Discretionary▲ · 2 stocks
Volkswagen AG
VOW
▲ PositiveTariffCapitalrelevance

German Finance Minister and VW works council back higher EU tariffs on Chinese-made hybrids to counter unfair competition against VW.

Electrification & Mobility▲ · 2 stocks
Volkswagen AG VZO O.N.
VOW3
▲ PositiveTariffCapitalrelevance

German Finance Minister and VW works council back higher EU tariffs on Chinese-made hybrids to counter unfair competition against VW.

Theme Impact 3

Related news

▼2

US auto industry groups urge Trump to block Chinese-made vehicles

Several US auto industry groups have sent a letter to President Trump urging him to block Chinese-made automobiles from entering the US market, ahead of a planned US-China summit next week. Among the groups that signed the letter are the Alliance for Automotive Innovation, which includes passenger car manufacturers from Japan, the US and Europe, and the National Automobile Dealers Association. Chinese-made passenger cars are effectively shut out of the US market by high tariffs and other measures, and the letter, dated the 17th, calls for the current policy to be maintained. It argues that easing entry restrictions would "undermine fair competition."
Electrification & Mobility ▼
Jiji Press·4hRead more →
▲3impact 5

Volkswagen Cuts 2026 Profit Outlook on China Slump and Porsche Writedown

Volkswagen has dramatically cut its 2026 profit outlook, now expecting an operating margin of no more than 1% this year, down from its previous forecast of at least 4%. The German carmaker expects around €10 billion, or $11.5 billion, in charges this year, including restructuring costs tied to workforce reductions and writedowns on Chinese assets; that total includes a €6-billion writedown related to Porsche, reflecting revised long-term expectations for the sports-car maker. Excluding the exceptional charges, Volkswagen said its operating margin would be around 4%. Volkswagen shares fell more than 7% following the announcement, dragging other automakers lower. Chief Financial Officer Arno Antlitz said the Chinese market has contracted by around 20%, with no stabilization currently in sight, while Chinese automakers take domestic share and expand into Europe with competitively priced electric vehicles. Volkswagen also said growing EV sales are weighing on profitability at its Volkswagen passenger-car and Audi businesses, and it recently reached an agreement with labor representatives that could increase planned job cuts to 100,000 globally.
VOW.XETRA ▼P911.XETRA ▼
Electrification & Mobility ▼
Bloomberg·11hRead more →

Unusually Large Business Delegation to Join Xi's US Visit, with BYD and Xiaomi Among Candidates

The US and Chinese governments are finalizing the selection of top Chinese business figures to accompany President Xi Jinping on his visit to the United States, according to three people familiar with the matter. According to the sources, candidates include Chinese electric vehicle giant BYD, smartphone maker Xiaomi, which has also expanded into EVs, battery giants CATL and Gotion High-Tech, home appliance maker Hisense Group, auto parts supplier Wanxiang Group, state-owned Bank of China, and agricultural conglomerate COFCO. Accompanying a large business delegation to the United States would be an unusual move. According to the people, the finalization of the delegation's members will wait for talks this weekend between US Treasury Secretary Bessent and Chinese Vice Premier He Lifeng, with formal invitations to be sent to each company within the next few days, and the US State Department is expected to approve visas for the delegation. CATL and BYD were added to the US Department of Defense's corporate list in January 2025 and June 2026, respectively, over alleged ties to the Chinese military. China's Foreign Ministry, responding to a Reuters question, said it had no information.
000031.CS002074.CS002594.CS1810.HK300750.CS600060.CG+1
Electrification & Mobility
ロイター·15hRead more →
© 2026 MarketDXNews