German automakers shouldn’t fear Chinese competition – Scholz

German automakers should not fear competition from China, said Chancellor Olaf Scholz during the inauguration of Mercedes-Benz’s first battery recycling plant on Monday. He described the plant as a key element in Germany’s evolving industrial policy agenda.

“Some say that China can do much better with electric motors than us. German companies need not be afraid of this competition,” Scholz said.

Scholz emphasised that the country’s automotive industry has successfully faced competition from South Korea and Japan in the past. He also reiterated Germany’s opposition to the European Union’s tariffs on Chinese-made electric vehicles (EVs).

He added, “I’m against tariffs that harm us,” advocating for using tariffs only where unfair practices put European producers at a disadvantage, such as in the steel industry.

The EU’s decision to impose tariffs on Chinese-made EVs, citing unfair state subsidies, has been met with backlash from Beijing, which denies the allegations and threatens to retaliate.

German automakers, who derive significant profits from the Chinese market, have called for more dialogue on the issue.

Meanwhile, Mercedes-Benz aims to extract and reuse raw materials like lithium, nickel, and cobalt from old electric car batteries at its carbon-emission-free facility.

Attribution: Reuters

Subediting: Y.Yasser