Tuesday, May 30, 2023

Macron shields ‘made in Europe’ electric car to counter Chinese wave

Huge wave of Chinese vehicles in Europe Has rung alarm bells all over the European industry. The Asian giant’s big brands are counting on Brussels’ green plan to land their troops on the old continent, led by electric cars. In view of this situation, countries like France have been forced to take action and shape their policy in this matter. Defending the production of ‘Made in Europe’ electric vehicles,

last Thursday, Emmanuel Macron developed a new strategy to restrict access to the so-called ‘Ecological Bonus’, a program that includes assistance of up to 7,000 euros to buy electric cars that cost no more than 47,000 euros and which cost the French state 1,200 million euros a year. The new plan does not directly exclude foreign-made cars from the program, as this would violate World Trade Organization (WTO) rules, but rather by Denying subsidies to vehicles that don’t meet a range of environmental requirements,

These criteria undoubtedly favor those built on the Old Continent. Well, despite the fact that China is the largest producer of electric vehicles on the entire planet, Its energy ‘mix’ still largely depends on coal, Herein lies the key to the plan drawn up by Macron, who says vehicles and batteries produced in France and Europe generate a “better carbon footprint”. “I want to make France first european country To reconsider the conditions of access to the ecological bonus so that the carbon footprint of vehicle manufacturing is taken into account”, highlighted the French President in a meeting at the Elysee Palace with leading figures of the industrial sector.

“It’s not about protectionism, but We do not want to use French taxpayers’ money to accelerate industrialization outside Europe.”, controlled the head of the Elysée, but not before warning that he “will not allow the errors of the photovoltaic sector to be repeated, where a dependence on the Chinese industry was created that enriched its producers,” he buried. now with the French government by the end of the year To design the criteria for this renewed aid program, where the integration of recycled or organic materials into the production of vehicles will also be reviewed and assessed from battery to engine manufacturing, as detailed by its economy portfolio Is.

Strong economic implications for European industry

Allianz Trade Insurer has published a report to understand the economic impact of the potential growth rate of Chinese producers. in which figure 7,000 million euros per year Combined losses to European industry up to 2030 in this scenario. According to the said report, The solution lies in the hands of the European authorities Which should face the situation by establishing reciprocal tariffs on the incoming fleet from both the Asian country and the United States.

However, the challenge may go beyond European soil. Analysis by the insurer shows how, as they expand their borders in Europe, Chinese manufacturers increase their national market share and For European brands based in their home country away from the equation Which are starting to significantly reduce their sales in the sugar sector.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com/
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