(Bloomberg) -- Volkswagen AG Chief Executive Officer Oliver Blume hopes for an alternative solution to tariffs on Chinese electric vehicles as he braces for potential retaliation from Beijing, Bild am Sonntag reported.
“Possible punitive tariffs would be particularly risky for the German automotive industry,” Blume told the Berlin-based newspaper. “We would face significant disadvantages in the Chinese market. And that is why we are clearly opposed to such new rules.”
Blume said companies that invest and create jobs in Europe should receive benefits, possibly exempting them from tariffs as high as 45% on Chinese EVs that the EU voted for on Friday.
Potential retaliatory tariffs by China on German cars could affect Volkswagen vehicles manufactured in China as well as German exports, including brands such as Audi, Porsche or Lamborghini, Blume said.
Such a move would be another blow to the German car industry, which has been reeling from profit warnings and growing concerns over balance sheets amid slowing demand and stiff competition.
Volkswagen, which recently cut its guidance for a second time this year, is considering shutting factories in Germany for the first time to cut costs.
The EU’s push for tariffs comes after an investigation found that China unfairly subsidized its EV industry. Germany, which relies on its automotive industry for economic growth, was among the member states who voted against the measure.
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