VW CEO: Chinese automakers should be allowed to avert tariffs by investing in EU
Blume suggests credit for investments instead of punitive tariffs
EU to impose tariffs on China-made EVs despite German opposition
Retaliatory tariffs by China could hurt European carmakers, Blume warns
FRANKFURT, Oct 6 (Reuters) -The CEO of German carmaker Volkswagen VOWG_p.DE said the European Union should consider adjusting planned tariffs against China-made electric vehicles to make allowances for investments made in Europe.
"Instead of punitive tariffs this should be about mutually giving credit for investments. Those who invest, create jobs and work with local companies should benefit when it comes to tariffs," VW CEO Oliver Blume told Sunday paper Bild am Sonntag an interview.
The European Union will press ahead with tariffs on China-made electric vehicles, the EU executive said on Friday, even after the bloc's largest economy Germany and German carmakers rejected them, exposing a rift over its biggest trade row with Beijing in a decade.
The proposed duties on EVs built in China of up to 45% would cost carmakers billions of extra dollars to bring cars into the bloc and are set to be imposed from next month for five years.
The Commission, which oversees the bloc's trade policy, has said they would counter what it sees as unfair Chinese subsidies after a year-long anti-subsidy investigation, but it also said on Friday it would continue talks with Beijing.
VW's Blume told Bild am Sonntag that there was a risk that retaliatory tariffs by China would hurt European carmakers.
Reporting by Ludwig Burger, editing by Franklin Paul
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