CUPRA Faces Risks from EU Tariffs on Chinese EVs

Volkswagen's CUPRA brand faces significant challenges due to the European Commission's proposed 21.3% import tariffs on Chinese-made electric vehicles. The tariff would substantially increase the price of CUPRA's Tavascan SUV, making it unaffordable for many consumers and risking the financial stability of the company. Wayne Griffiths, CEO of SEAT and CUPRA, emphasized that these tariffs could 'wipe out' the brand, leading to reduced production and job cuts in Spain, and missing EU CO2 reduction targets. Efforts to negotiate a compromise on tariffs with the EU have been complicated by broader trade tensions and skepticism from European authorities. Meanwhile, Canadian Prime Minister Justin Trudeau announced a 100% tariff on Chinese EV imports, echoing similar protectionist measures. The broader market impact is evident as Chinese automakers, including SAIC Motor Corp. and BYD Co., saw a decline in EV registrations in Europe following the introduction of these tariffs.