China News
CAR TECH
Germany urges compromise in EU-China EV row; Volkswagen profits plunges on China slump
Germany urges compromise in EU-China EV row; Volkswagen profits plunges on China slump
by AFP Staff Writers
Berlin (AFP) Oct 30, 2024

The German government on Wednesday urged the European Union and China to reach a compromise a day after Brussels announced extra tariffs on Chinese-made electric cars.

Europe's biggest economy, whose flagship auto industry is mired in problems, is "appealing both to Brussels and Beijing to come to durable and constructive solutions" through ongoing talks, said Chancellor Olaf Scholz's spokesman Steffen Hebestreit.

Germany had voted against the extra tariffs, measures which Hebestreit said "will naturally bring a response from the Chinese side".

"Such trade disputes are not something we should aspire too," he told a press conference.

The new tariffs of up to 35 percent were announced by the European Commission on Tuesday after an EU probe found Chinese state subsidies were undercutting European automakers.

Beijing said Wednesday it had lodged a complaint with the World Trade Organization, with China's commerce ministry vowing to "take all necessary measures to firmly protect the legitimate rights and interests of Chinese companies".

Talks are continuing between the EU and China, and the duties can be lifted if the two sides reach a satisfactory agreement.

On Tuesday Germany's Association of the Automotive Industry, which represents car giants like Volkswagen, BMW and Mercedes, branded the tariffs "a step backwards for free global trade and thus for prosperity, job preservation and growth in Europe".

On Wednesday Volkswagen warned that "painful" cuts lay ahead as it announced plummeting third-quarter profit, in part because of falling sales in China, its biggest market.

Worker representatives this week said at least three German VW plants were at risk and tens of thousands of jobs could go at the namesake brand.

Volkswagen profit plunges on high costs, Chinese slump
Frankfurt, Germany (AFP) Oct 30, 2024 - Europe's biggest carmaker Volkswagen reported a 64-percent drop in third-quarter net profit Wednesday, as it struggles with high costs and slowing sales in China.

Net profit fell to 1.58 billion euros ($1.7 billion) year-on-year, said the group, which is planning an unprecedented restructuring that could include thousands of job cuts.

The German car giant -- whose 10 brands range from its core VW models to Seat, Skoda and Porsche -- has been hit hard by high manufacturing costs, a stuttering switch to electric vehicles and increased competition in key market China.

Global vehicle deliveries fell by seven percent in the July to September period, Volkswagen said, with an increase in sales in North America failing to offset a 15-percent fall in China.

Sales of the group's electric models were down 10 percent.

Volkswagen's results were also impacted by "higher fixed costs" and restructuring expenses, it said.

VW finance chief Arno Antlitz said the group's lacklustre performance so far this year reflected a "challenging market environment" and highlighted the "urgent need for significant cost reductions and efficiency gains".

Volkswagen stunned employees in September when it announced it was considering closing factories in Germany for the first time as part of a massive cost-cutting drive to improve competitiveness.

The savings efforts are focused on the core VW brand, which reported an operating profit margin of only two percent over the first nine months.

Volkswagen labour leaders told staff on Monday that at least three VW brand factories were at risk in Germany and that tens of thousands of jobs could be slashed. Other factories would be downsized and pay cuts of 10 percent loomed for remaining employees, they warned.

Worker representatives have vowed to put up strong resistance to the plans, with possible strike action starting in December.

Volkswagen bosses have not commented on the details of the savings drive but have described the situation as "serious".

The group will hold a second round of talks with the powerful IG Metall union on Wednesday. The union is seeking a seven-percent pay rise for workers, which bosses have rejected.

Related Links
Car Technology at SpaceMart.com

Subscribe Free To Our Daily Newsletters
Tweet

RELATED CONTENT
The following news reports may link to other Space Media Network websites.
CAR TECH
Volkswagen profit plunges on high costs, Chinese slump
Frankfurt, Germany (AFP) Oct 30, 2024
Europe's biggest carmaker Volkswagen reported a 64-percent drop in third-quarter net profit Wednesday, as it struggles with high costs and slowing sales in China. Net profit fell to 1.58 billion euros ($1.7 billion) year-on-year, said the group, which is planning an unprecedented restructuring that could include thousands of job cuts. The German car giant - whose 10 brands range from its core VW models to Seat, Skoda and Porsche - has been hit hard by high manufacturing costs, a stuttering swi ... read more

CAR TECH
China delivers scientific payloads from reusable satellite Shijian-19 to users

China to launch 14th manned mission to Tiangong Space Station

China sets ambitious space science development goals through 2050

China successfully retrieves first reusable test satellite Shijian-19

CAR TECH
Asian stocks mostly fall, tracking global slide

China factory output expands for first time in six months

Hong Kong economic growth misses forecast in third quarter: data

Biden unveils $3 bn US ports boost, takes aim at Trump

CAR TECH
CAR TECH
Wary of Japan's "Asian NATO" proposal, neighbours stick with web of alternatives

India, China and S.Africa leaders bolster Putin at key summit

Germany's Scholz says war-torn Ukraine cannot join NATO now

NATO, Ukraine, trade: Europe's jitters ahead of US vote

CAR TECH
Germany to bury nuclear waste but toxic dispute unresolved

Framatome to Supply Nuclear Fuel for Hungary's Paks VVER Reactors

Czech body rejects EDF, Westinghouse nuke deal complaints

Czech body halts nuclear deal after EDF, Westinghouse cry foul

CAR TECH
US finalizes curbs on investing in Chinese tech

US unveils national security plan to step up use of AI

GMV wins ESA contract for CyberCUBE space cybersecurity mission

Chinese hackers targeted Trump, Vance phones: report

CAR TECH
Germany to bury nuclear waste but toxic dispute unresolved

Framatome to Supply Nuclear Fuel for Hungary's Paks VVER Reactors

Czech body rejects EDF, Westinghouse nuke deal complaints

Czech body halts nuclear deal after EDF, Westinghouse cry foul

CAR TECH
On US coast, wind power foes embrace 'Save the Whales' argument

Renewables revolt in Sardinia, Italy's coal-fired island

Government action needed for world to meet renewables goal: IEA

DLR tests innovative sensor system in wind turbine rotor blades

Subscribe Free To Our Daily Newsletters




The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.