Planned EU tariffs put Volkswagen's Cupra 'at risk', says brand's CEO

An electric vehicle (EV) made in China and designed in Spain by Volkswagen's Cupra brand would be "wiped out” if the European Commission followed through with planned import tariffs of 21.3 per cent on the vehicle, the brand's chief executive told Reuters.

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Raising the price of the Tavascan, an all-electric sport utility vehicle selling for around €52,000 (S$75,000), to cover the costs was not an option in the current European economic environment, said Mr Wayne Griffiths, who heads up the Seat and Cupra brands under Volkswagen's Seat subsidiary.

Nor was moving production to another location after the company had already invested in building up capacity at Volkswagen's Anhui plant, a majority-owned joint venture with China's JAC Automobile Group.

Without the projected Tavascan sales, Cupra would miss EU-mandated carbon dioxide reduction targets in 2025 and so face heavy fines, forcing it to cut output with a possible impact on employment at its base in Spain, Mr Griffiths said.