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Mercedes-Benz’s chief govt has warned of the consequences of a wave of tariffs and commerce obstacles as he pointed to the very best “complexity” the worldwide automotive {industry} has confronted in additional than three many years.
Ola Källenius, head of the German carmaker, mentioned the transition to electrical autos alongside shifts in geopolitics and commerce had basically challenged his {industry}, saying regionalisation would stay a development.
“I don’t think I’ve experienced a higher level of complexity in my 32 years in the business,” he instructed reporters gathered at Shanghai’s carefully watched auto present.
The feedback got here as international carmakers have been compelled to cope with greater EU tariffs on electrical autos imported from China, in addition to President Donald Trump’s looming 25 per cent tariffs on automobile exports to the US.
Källenius mentioned his firm was nonetheless dedicated to the US — the place it bought 14 per cent of its automobiles final 12 months — within the “long-term” and in addition reiterated requires the EU to succeed in an settlement with Beijing over EV tariffs.
Mercedes and different German carmakers have repeatedly hit out at EU tariffs on Chinese language-made electrical autos, which may attain as much as 45 per cent. They worry their exports to China may endure from retaliation by Beijing, and so they additionally ship EVs from China to Europe themselves.
Källenius on Wednesday reiterated hopes that an “equitable and intelligent solution” could be present in persevering with discussions between Brussels and Beijing.
That dispute has since been overshadowed by Trump’s commerce battle with China, which has snarled international commerce after tariffs between the world’s two greatest economies this month spiralled to greater than 100 per cent.
“We’re also dependent on the ability to import and export in all directions — if restrictions, tariffs, other trade barriers arise, that is not good for general global trade and would affect us as well,” he mentioned. Källenius was amongst a gaggle of automotive executives who met Trump final week to debate tariffs.
Audi chief govt Gernot Döllner additionally hit out at restrictions as he spoke on the sidelines of China’s greatest automobile present, the place international automakers have descended with new fashions in a market the place gross sales have drastically slumped amid fierce competitors from Chinese language gamers.
“Tariffs are not the solution,” he mentioned in an interview with the Monetary Instances. “They hinder innovation and they make a false competition,” he added. “We are producing in China for over 30 years now and we believe other solutions have to be found.”
“We see a discussion in the US and hope that we have stability there in the next month,” he added.
The Shanghai auto present alerted the world to the fast growth of Chinese language EV know-how when it was final held within the metropolis in 2023. Tariffs on Chinese language autos have been imposed by the US and the EU in 2024 as automakers, together with BYD, expanded abroad.
However that industry-specific dispute has since been overshadowed by the commerce battle between the US and China, which now threatens the way forward for the general move of products between the 2 nations.
“No matter what the current political policymaking is, [the US] is an economy and market you want to have a very good presence in,” Källenius mentioned.
He described China as “the most competitively intense market”.
“I can only repeat what history tells us: economies that are free and open and are exposed to the full force of competition are usually the ones that are most innovative,” he added. “We are open for competition in any direction through any country on a level playing field.”
