If the import tariffs on electric cars announced this week come into effect, Stellantis will shift production of some models manufactured in China to Europe.
Zhittong Finance has learned that Carlos Tavares, the CEO of Stellantis, said that due to the European Union's recent announcement of increased tariffs on Chinese electric cars, some production of the Zeekr will be shifted to Europe. Tavares said the tariff level announced by the European Commission was higher than his previous belief that "importing was more cost-effective than producing locally". Due to potential additional costs, some models produced by the Zeekr, a partner of Stellantis, will be moved to Europe for production.
Previously, Stellantis Group and Zeekr Auto established Zeekr International in a 51:49 ratio, with the joint venture led by Stellantis Group and having comprehensive internal development capabilities. It is committed to redefining electric vehicles with cutting-edge technology and innovation. Zeekr International's expansion plan will quickly expand its scope, helping to drive the value growth of Zeekr Auto and Stellantis Group. Zeekr International will first launch sales in Europe in September 2024 and plans to expand its sales network to 200 outlets in Europe by the end of this year.
Last month, both companies stated that electric vehicles will eventually be produced outside of China, in part due to the escalating global trade tensions. The joint venture's goal is to cater to the mass market, with at least six new models by 2027. Last month, Tavares said Stellantis had announced that its factory in Tychy, Poland (currently producing the Jeep Avenger) may be a potential production base for Zeekr Auto vehicles. Zeekr International may accelerate plans to transfer assembly of some models to Stellantis factories.
This week, the EU notified several Chinese automakers that additional tariffs will be imposed on imported electric cars. This decision has drawn strong condemnation from the Chinese side. The tariff level will vary depending on the level of cooperation from each automaker in the investigation, on top of the existing 10% tariff. There may be further changes in the future. German officials have said the government is working to prevent--or at least soften--the impact of the tariffs, as they believe that the escalating trade tensions do more harm than good. The EU's temporary tariff plan comes into effect on July 4, with full implementation in November.