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illuminem summarizes for you the essential news of the day. Read the full piece on Bloomberg or enjoy below:
🗞️ Driving the news: Chinese electric vehicle (EV) manufacturers are expanding production in Europe to circumvent EU tariffs on imported EVs, which can reach up to 48%
• By partnering with local companies and setting up assembly plants in countries like Spain, Poland, and Hungary, these manufacturers aim to avoid hefty tariffs and strengthen their market presence in Europe
🔭 The context: EU tariffs are part of a broader trade dispute and environmental strategy, aimed at leveling the playing field for European carmakers who are struggling with the influx of cheaper Chinese EVs
• These tariffs are intended to protect local industry while the EU transitions to greener transportation
🌍Why it matters for the planet: This shift could significantly impact Europe's automotive industry and its green transition, as affordable EV options are crucial for meeting climate targets
• However, it also raises concerns about dependency on foreign manufacturers and the potential displacement of European carmakers
⏭️ What's next: As Chinese firms increase local production, Europe may see a rise in jobs and investments in the automotive supply chain
• However, the EU's regulatory environment and trade policies will continue to evolve, potentially affecting the dynamics of the EV market
💬 One quote: "All European governments are dating Chinese car makers to come to assemble their vehicles in their countries," said Stellantis CEO Carlos Tavares
📈 One stat: Chery and Ebro target producing 150,000 cars annually at their Spanish facility by 2029
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