The economy minister of Saxony said the European Union should weigh higher tariffs on Chinese-made cars as a means to push Chinese automakers toward industrial ties with European producers like Volkswagen. Dirk Panter, who represents the eastern German state that hosts Volkswagen’s Zwickau electric vehicle plant, made the comments in an interview published on Thursday in the Bild newspaper.
Panter told Bild: "We need to consider imposing higher tariffs on Chinese-made cars at the EU level." His remarks came as Volkswagen has raised the prospect of shuttering four German factories over the coming years if a viable alternative is not found. Among those facilities named by the company is the all-electric Zwickau plant in Saxony.
Volkswagen’s chief executive, Oliver Blume, has identified several possible responses to the competitive pressure from Chinese automakers. One option Blume has mentioned is shifting production of models developed in China to facilities in Europe. He has also said the company is open to partnerships with Chinese carmakers as a potential path forward.
Panter framed the idea of a joint venture in Saxony as a negotiating advantage. "If a joint venture in Saxony could help avoid European tariffs, that would be a bargaining chip that would allow us to negotiate from a completely different position," he told Bild, arguing that such an arrangement could change the terms of discussion between European manufacturers and Chinese producers.
The minister noted that Chinese firms, including BYD, have been steadily increasing their share of the European market. He highlighted that some popular plug-in hybrid models sold by Chinese manufacturers are not subject to the EU’s present tariffs, which apply to all-electric vehicles.
Panter also emphasized that Europe will not shut its market to Chinese entrants. "We will not keep Chinese manufacturers out of Europe," he said. "Anyone who wants access to our market must also take responsibility for value creation and employment in Europe."
These comments link trade policy, industrial strategy and local employment concerns in a region that hosts a major electric vehicle production site. They reflect a debate over how to respond to rising competition from Chinese automakers while protecting manufacturing jobs and production capacity in Europe.