Thanks for reading Hyperdrive, Bloomberg's newsletter on the future of the auto world. Read today's featured story in full online here. The European Union voted on Friday to impose tariffs as high as 45% on electric vehicles from China, threatening a broader trade conflict with Beijing, which has already vowed to protect its companies. The European Commission, the bloc's executive arm, can now proceed with implementing the duties, which would last for five years. Ten member states voted in favor of the measure, while Germany and four others voted against and 12 abstained, according to people familiar with the results. The decision by the EU comes after an investigation found that China unfairly subsidized its industry. Beijing denies that claim and has threatened its own tariffs on European dairy, brandy, pork and auto sectors. The bloc is actively trying to reduce its dependencies on China, with former European Central Bank President Mario Draghi warning last month that "China's state-sponsored competition" was a threat to the EU that could leave it vulnerable to coercion. The EU, which did €739 billion ($815 billion) in trade with China last year, was split on whether to move forward with the duties. The EU and China will continue negotiations to find an alternative to the tariffs. The two sides are exploring whether an agreement can be reached on a mechanism to control prices and volumes of exports in place of the duties. "The EU and China continue to work hard to explore an alternative solution that would have to be fully WTO-compatible, adequate in addressing the injurious subsidization established by the commission's investigation, monitorable and enforceable," the commission said in a statement announcing the decision. China's commerce ministry acknowledged the EU's political will to continue negotiations while warning that the tariffs will "shake and hinder" the confidence of Chinese companies investing in Europe. Chinese EV makers will have to decide whether to absorb the tariffs or raise prices at a time when slowing demand at home is squeezing their profit margins. The prospect of duties has prompted some Chinese automakers to consider investing in factories in Europe, which might help them dodge tariffs. The additional tariffs already have slowed Chinese carmakers' momentum in Europe, with their sales plunging 48% in August to an 18-month low. The region is a desirable destination for the nation's manufacturers because EVs sell in relatively high numbers and at much more robust prices than other export markets. The share of electric cars sold in the EU that were made in China climbed from around 3% to more than 20% in the past three years. Chinese brands accounted for around 8% of that market share, as international companies that export from China including Tesla taking up the rest. The large number of abstentions in the EU vote betrays unease in many member states about a possible trade war with China, even as key nations like France have said that the bloc needs to defend its own industries more strongly. German Economy Minister Robert Habeck warned earlier that imposing the duties could lead to a tariff war. "It's the right signal from the German government, which — in the interests of the economy, prosperity and growth — has backed the interests of the European and German automotive industry and its employees on such an important issue and voted no today in the EU decision," Hildegard Müller, president of German car lobby VDA, said after the vote. — By Alberto Nardelli, Jorge Valero, and Craig Trudell Read More: Workers picketing outside the Port of Savannah on Thursday. Photographer: Parker Puls/Bloomberg US dockworkers agreed to end a three-day strike that had paralyzed trade on the US East and Gulf coasts and threatened to become a factor in the presidential election. The International Longshoremen's Association and the US Maritime Association extended their previous contract through Jan. 15, the two said in a joint statement. Work will restart Friday morning and the two sides will restart negotiations on a long-term agreement, which will include a pay increase of about 62%. - Sign up here for Supply Lines, Bloomberg's daily newsletter tracking global trade.
Electrify America's San Francisco charging station offers wifi and places to relax while drivers top up their batteries. Photo courtesy of Electrify America Charging an electric vehicle in the future increasingly looks like an experience somewhere between a truck stop and an airport lounge. Most public chargers sit in parking lots, often three or four machines along the side of a hotel or grocery store. Drivers are exposed to the elements and — unless they need to go shopping — are basically stuck hanging out in their cars while filling their batteries. But charging companies and automakers increasingly see a need for stations with amenities: restaurants, good bathrooms, comfortable furniture, and canopies that shield from the rain, snow and sun. After all, even the fastest chargers need a half-hour to top up your car. |
No comments:
Post a Comment