Hyundai Motor CEO José Muñoz warned on Thursday that the US could face a wave of Chinese auto imports that has disrupted Europe’s car market unless Washington maintains tariffs and other market-access safeguards.’
Jcdemier., Wikimedia Commons
Chinese automakers have rapidly expanded in Europe, eroding the market share and profitability. It is hard to compete with slave labor or coolie wages.
Munoz said Chinese vehicles are 30% to 40% cheaper than rival models in some markets, including Italy, Spain and France.
This is despite trade barriers such as tariffs or minimum pricing commitments the EU placed on Chinese-built electric vehicles.
Britain Has No Tariffs
“The UK, which in the past was a very profitable, very strong market, has become like China,” he said in San Jose, California. “All the top sellers are Chinese because there are no barriers.”
“So I think we could expect similar things to happen in the US, at different levels, unless there are certain conditions,” he said, referring to measures like the EU’s tariffs and other market-access requirements.
Chinese-branded cars sold in the EU rose to more than 9% in the first half of this year. That is according to data from the European Automobile Manufacturers’ Association. In Britain, the share was 15% of new car registrations, according to the Society of Motor Manufacturers and Traders.
Brussels is also working on “Made in Europe” rules. The rules will set minimum local content limits for electric vehicles sold in the bloc. It will force Chinese automakers to search for factories in the region.
Munoz said the US needs to impose conditions on Chinese companies “to be able to minimize the impact.”
“But the impact is going to be there for sure,” he said.
The US effectively blocks imports of Chinese electric vehicles with tariffs of about 100%. President Donald Trump told Fox News last week he would welcome Chinese automakers if they built vehicles in the country.
American carmakers are also sounding the alarm.