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FRANKFURT (Reuters) – Germany’s car industry on Friday urged Brussels and Beijing to avert tariffs on imports of China-made electric vehicles through a negotiated deal, after the European Commission received enough support from its member states to implement them.
“Today’s vote is a fatal signal for the European automotive industry. What is needed now is a quick settlement between the EU Commission and China to prevent a trade conflict from which no one gains,” BMW CEO Oliver Zipse said.
Sources told Reuters on Thursday that Germany would vote against the tariffs, as its industry has a high interest to keep good relations with China, one of Germany’s top trading partners and the world’s biggest car market.
“The fact that Germany voted against the tariffs is an important signal and increases the chances for a negotiated settlement,” Zipse said.
Mercedes-Benz, which counts China’s Beijing Automotive Group Co Ltd and Geely Chair Li Shufu as its two top shareholders, on Friday said the tariffs were a “mistake”, urging the European Commission to delay their implementation to allow further talks about a deal.
“We are convinced that punitive tariffs worsen the competitiveness of an industry in the long term,” the company said in a statement.
Volkswagen, Europe’s top carmaker, also called on both sides to find a “political solution”, adding tariffs would not make Europe’s car sector more competitive.
“Until the decision is implemented at the end of October, a negotiated solution that avoids countervailing duties on (battery electric vehicles) imports from China is still possible.”
(Reporting by Christoph Steitz, Editing by Rachel More)