Mercedes-Benz CEO Ola Källenius has voiced strong support for a collaborative and balanced approach to resolving trade tensions between the European Union and China over electric vehicle (EV) imports. Speaking at the Shanghai Auto Show, Källenius emphasized that while the desire for a level playing field is valid, imposing strict tariff barriers is the most “crude” method and could hinder innovation and cooperation.
The European Union raised tariffs on China-manufactured EVs in late 2024, reaching up to 45.3% for certain companies. Among the affected brands were major Chinese players such as BYD, Geely, and SAIC, which now face additional levies on top of the EU’s standard 10% car import duty. In response, discussions have emerged between Brussels and Beijing about potential alternatives to tariffs, including minimum pricing arrangements—also known as price undertakings—for vehicles imported into Europe.
Källenius urged negotiators from both sides to find an equitable resolution that encourages innovation rather than stifles it. “We need win-win solutions,” he remarked, pointing out that history has shown the most competitive and open markets often lead to the most innovative outcomes. He reiterated that Mercedes-Benz hopes for a diplomatic and economically sound agreement that avoids trade confrontation and supports long-term industry growth.
Despite a challenging market climate, Mercedes-Benz continues to invest in China, revealing its new Vision V series at the Shanghai Auto Show. The luxury all-electric limousine vans will be partially manufactured in China, underlining the brand’s strategic commitment to the region. Källenius also expressed optimism that the upper segment of the electric vehicle market will see substantial growth over the next two to three years.
He noted that while full electrification remains the ultimate goal, plug-in hybrid vehicles are likely to play a transitional role in the global shift, possibly maintaining relevance until the end of this decade. Mercedes-Benz, like many foreign automakers, is currently grappling with declining sales in China amid a slowdown in economic activity and increasing competition from domestic brands.
The CEO’s remarks underscore a broader industry desire to maintain constructive global trade relations, especially at a time when geopolitical tensions risk fragmenting key automotive markets and supply chains.
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