European Tariffs Threaten CUPRA's Electric SUV Production

The CEO of Volkswagen's CUPRA brand warned that the brand's electric SUV Tavascan could face severe financial impacts due to the European Commission's proposed 21.3% import tariffs on Chinese-made vehicles. Raising prices or relocating production isn't feasible, risking job losses and the company's financial future.

Wayne Griffiths, CEO of Volkswagen's CUPRA brand, has raised concerns over the European Commission's proposed 21.3% import tariffs on Chinese-made vehicles, including the Tavascan electric SUV.

Griffiths argued that increasing the Tavascan's price or moving its production elsewhere would be impractical, potentially leading to missed carbon dioxide reduction targets, hefty fines, and job losses in Spain.

The proposed tariffs aim to protect the European car industry but could paradoxically harm it, with CUPRA urging the EU Commission and governments to reconsider the duty.

(With inputs from agencies.)