Dec 07, 2025
3 min read
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Volkswagen, China-made fires and production.Brussels wants to eliminate tariffs
The European Commission, led by President Ursula Von der Lenen, confirmed that the Volkswagen Group is a global champion when it announced the start of its withdrawal from China.
The King of the Banking Industry is turning to a business model, and the sign of this sad sign is the disappointment of the Prepan Conkwagen made in China.
While Europe is gripped by an unprecedented industrial crisis, the European Commission is proposing a postponement of anti-subsidy measures on the German carmaker.The ceasefire requested by VW Anhui, which makes the Cupra model in China, marks the closing of the cycle of deindustrialization in Europe.VW currently imposes a 20.7% anti-dumping duty on Cupra models made in China, which is a 10% basic tax.e. VW's proposal, made through its Seat/Cupra subsidiary, as an alternative to taxes, an annual import quota and a minimum import price, mechanisms which, if approved by Brussels, would exempt the German giant from paying taxes.This is not a guess, but a pre-planned plan.A few days ago, Volkswagen itself announced as a success that it was able to develop electric vehicles that are made entirely in China at half the price.compared to manufacturing in Europe, thanks to efficient supply chains, much lower costs for purchasing batteries and labor.According to a Reuters analysis, by 2024 to give an idea of the cutoff in competition, a German VW worker will earn an average of 59 euros an hour, compared with just $3 an hour in China.The entire manufacturing base of Europe is now on its knees.Pressure from German unions and politicians to produce electric vehicles at home in a bid to protect jobs has turned into poison ivy, according to a plausible explanation by analyst Justin Cox.
The data is grim: the average efficiency of passenger car factories in Europe will fall to 60% in 2023, but in high-price countries (Germany, France, Italy and the UK) this will drop to 54%.Minimum energy consumption for profitability is below 70%.
The result?Hundreds of thousands of jobs are at risk of disappearing in a short time.Volkswagen, which has invested billions in China to remain competitive in the market, is Jobs at home.The agreement with the union foresees the elimination of 35,000 jobs by 2030 in Germany.The VW brand has reduced its production capacity in Germany by 40%, closing the line for 734,000 vehicles.
Instead of maintaining the protection of strong culture against the Chinese competition, they will provide space for their own companies to move to the East.
This policy of economic suicide has many fathers, including German car manufacturers.Mercedes and BMW, along with Volkswagen, lobbied against higher EU tariffs at the time, fearing the trade war would hurt their sales in China, the world's biggest market and vital to their profits.The German Automotive Industry Association (VDA) called the tariffs "wrong" and supported a negotiated solution with Beijing.
The danger of resorting to electrical energy has become unbearable with the opening (perhaps) of the registry by the Chinese authorities and the discontent of the Chinese sector.European manufacturers struggle with high-cost electric cars that do not meet the needs of the euro, ID.3, income and employment in Europe.Czech Republic, urges in the letter to be ordered to maintain the global fence.
The EU, always claiming the moral upper hand, has effectively created the perfect conditions to empty the continent of industrial production.Accepting import duty exemptions from companies that have moved to China is an oath of relocation.Europe is on its way to becoming a showroom for Asian products, and its factories will be reduced to rubble.Paradoxically, several Chinese car manufacturers are moving to Europe, where they intend to assemble cars and sell them locally, bypassing European tariffs.Great Wall Motors plans to open car assembly plants in Spain and Hungary.Even considering the highest European labor costs (16 euros in Hungary, according to Reuters data), the Chinese believe that they can be more competitive than their domestic competitors.For convenience, European markets go to China, and the Chinese go to Europe, in short.The losers are the European workers.
