Is Geely Opening a Europe Plant to Dodge EU’s China EV Tariffs?
Introduction
Geely, a leading Chinese automotive manufacturer, is contemplating opening a manufacturing plant in Europe. This move is seen as a strategic response to the European Union’s proposed tariffs on electric vehicles (EVs) imported from China. This article explores the potential implications of Geely’s decision for both the company and the broader automotive industry.
Geely’s Strategic Move: Avoiding Tariffs
The European Union has been increasingly concerned about the influx of competitively priced electric vehicles from China, which could potentially undermine the market share of European automakers. In response, the EU is considering implementing tariffs on Chinese EV imports. Geely, recognizing the potential impact of these tariffs on its profitability and market position, is exploring the possibility of establishing a manufacturing plant within Europe itself.
Benefits for Geely
For Geely, opening a plant in Europe offers several advantages:
- Avoidance of Tariffs: By manufacturing vehicles within the EU, Geely can bypass the proposed tariffs, ensuring its EVs remain competitively priced in the European market.
- Proximity to Market: Being closer to its European customer base allows Geely to reduce shipping
Credits:https://europe.autonews.com/automakers/geely-may-open-europe-plant-avoid-eus-china-ev-tariffs
