Chancellor Scholz Urges German Automakers to Embrace Chinese Competition Amid EV Tariff Dispute

Chancellor Olaf Scholz has urged German automakers to embrace competition from China as Mercedes-Benz opens its first battery recycling plant. Scholz opposes EU tariffs on Chinese EVs, advocating for their use only when dumping and subsidies disadvantage European producers. Mercedes plans to recycle materials at its new plant.

Chancellor Olaf Scholz addressed German automakers, urging them not to fear the rising competition from China, as he inaugurated Mercedes-Benz's first battery recycling plant. This move aligns with Germany's new industrial policy aimed at strengthening its automotive sector against global rivals.

Scholz dismissed concerns about China's electric vehicle supremacy, citing past resilience against South Korea and Japan. He opposed the European Union's tariffs on Chinese-made EVs, advocating for penalties solely in cases of unfair advantages, like in the steel industry.

The European automotive industry faces significant challenges, including high costs and increasing Chinese competition. Despite this, Mercedes-Benz remains committed to sustainability, planning to recycle materials like lithium and nickel in its new, emissions-free facility.

(With inputs from agencies.)