European Import Tariffs Could Cripple Volkswagen's CUPRA Brand

Volkswagen’s CUPRA brand could face severe financial challenges if the European Commission proceeds with a 21.3% import tariff on its electric vehicle, the Tavascan, which is manufactured in China and designed in Spain. CUPRA's CEO highlighted the potential negative impacts on production, employment, and compliance with EU emissions regulations.

Volkswagen's CUPRA brand could face severe financial consequences if the European Commission enforces a 21.3% import tariff on its Tavascan electric vehicle. Wayne Griffiths, CEO of SEAT and CUPRA, warned that raising the SUV's price to cover the costs is not viable given the current European economic climate.

The company already invested in production capacity at Volkswagen's Anhui plant in China, ruling out relocation. Griffiths emphasized that without Tavascan sales, CUPRA would miss EU carbon dioxide reduction targets and face fines and production cuts, impacting jobs in Spain.

Griffiths criticized the tariffs, stating they jeopardize the company's financial future rather than protect the European car industry. Tesla managed to negotiate for a lower duty, highlighting the uneven impact. CUPRA hopes to negotiate similar terms as it works to persuade European authorities to reconsider the tariffs.

(With inputs from agencies.)