Trying to save European car industry

The European Union is going through with their punishment tariffs plan against Chinese cars. The EU is going through en economic wreckage in its car manufacturing business. Yesterday VolksWagen announced that they will layoff 10000 workers in Germany alone and three German factories will shut down completely.

The European market gets flooded with cheap Chinese electric vehicles and also Tesla has lowered its prices in Europe. The European electric vehicles are way more expensive to manufacture and therefore the market has crashed.

Fact is that there is still a lot of margin on the Chinese vehicles, so their retail prices will probably not budge due to the tariffs. It won’t help the European car brands, it will only serve the European tax revenue.

Subsidize

The only thing the European Union can do, is uses the money from the taxes to subsidise the European car industry to level the playing field. Which will probably not happen, so the effect of the tariffs will not result in the saving of the European car industry…

It will just fill the pockets of the European leaders…

Sincerely,

Pele23

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