Germany's Klingbeil urges measures against 'unfair trade' with Chinese carmakers
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
WOLFSBURG, Germany, Sept 17 : Germany's Vice Chancellor Lars Klingbeil on Thursday called for tougher European Union rules, including tariffs on imported plug-in hybrids, to help protect carmakers such as Volkswagen from Chinese competition.
Klingbeil, who is finance minister as well as the most senior Social Democrat in Chancellor Friedrich Merz's coalition, is striving to fend off public discontent over issues, including fuel prices and job cuts at Germany's most politically sensitive corporate employer.
"I am in favour of us standing up against unfair trade practices, and for Germany to adopt a different level of self-confidence and assertiveness towards countries that threaten our industry," Klingbeil told reporters in front of Volkswagen's headquarters in Wolfsburg, Lower Saxony.
In another state, Saxony-Anhalt, the far-right Alternative for Germany, or AfD party, won elections last weekend. A further AfD surge in state-level elections this weekend would tighten the pressure on conservative Chancellor Merz and his government.
CNA Games
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Show More
Show Less
The AfD has sought to build support among workers in German industry worried about job security.
Klingbeil said Volkswagen would continue to transform following a landmark stakeholder deal on cutbacks at the start of this month.
"We are aware that this is the beginning of a transformation but employees can be assured that I, we, stand by them in solidarity," Klingbeil said.
As Chinese automakers have expanded their presence in Europe, the EU has imposed tariffs on imported battery electric vehicles, but excluded hybrids so far.
In addition to calling for tariffs against Chinese-made plug-in hybrid cars, Klingbeil urged the EU to tighten rules on local-content that lay out the percentage of car parts that must be locally made.
Earlier on Thursday, works council leaders at Volkswagen and subsidiaries including Audi and Porsche met with Klingbeil to discuss the restructuring. The premier of Lower Saxony, Volkswagen's second-biggest shareholder, was also present.
The overhaul under CEO Oliver Blume foresees 50,000 additional layoffs and the closure of four plants from early next decade unless another solution can be found. Half of the job cuts would be in Germany.
Newsletter
Week in Review
Subscribe to our Chief Editor’s Week in Review
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app