The possible approval of the European Union tariff scheme on cars built in China could also have implications for models that some European brands assemble in their own factories in the country. Among these is, for example, the Cupra Tavascan, the new SUV from the Spanish brand that is assembled in the Anhui plant owned by the Volkswagen Group. The potential dangers of overtaxation for this model but also for the financial structure of the Iberian brand were highlighted by Cupra CEO Wayne Griffiths, who spoke from Barcelona on the sidelines of the presentation of the new Cupra Terramar.
The risks for Cupra
As reported by the international news agency Reuters, Tavascan is among the models most exposed if the new tariff system on vehicles produced in China were to come into force. The Spanish brand immediately ruled out moving production elsewhere but without sales of the new model, powered by a 100% electric powertrain, Cupra may not meet the carbon dioxide emission reduction targets imposed by the EU next year and therefore face possible sanctions, forcing it to cut production with a possible impact on employment at its headquarters in Spain, as highlighted by Griffiths himself.
Griffiths’ position
“The EU tariff system puts the entire financial future of the company at risk,” Griffiths said, “The intention was to protect the European car industry, but for us it is having the opposite effect… We need to find a solution.”
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