### Stellantis CEO Warns of Negative Impact from EU Tariffs on Chinese EVs

In a recent statement, the CEO of Stellantis, Carlos Tavares, highlighted that the European Union's imposition of duties on Chinese-made electric vehicles will likely accelerate plant closures in Europe. Tavares argued that the tariffs will incentivize Chinese manufacturers to build production facilities within Europe, exacerbating the region's existing overcapacity issues.

During the Paris Car Show, Tavares described the tariffs as a "good communication tool" but emphasized their unintended consequences. He pointed out that establishing manufacturing operations in Europe is a method to circumvent these customs duties. However, this shift is expected to intensify the need for shutdowns of existing plants.

The CEO cited the example of China's electric vehicle giant BYD, which is setting up its inaugural European assembly plant in Hungary. This move underscores the trend of Chinese companies opting for countries with fewer cost disadvantages, such as lower energy expenses, which make locations like Germany, France, and Italy less attractive for these investments.

Italy has been actively seeking to attract Asian automakers to bolster its automotive sector. The Italian government has voiced its intention to engage with companies such as China's Dongfeng and Chery Auto over potential manufacturing investments. This development comes amid a backdrop of declining output from Stellantis plants in Italy, leading to tension between the company and Rome.

The reshaping of the manufacturing landscape in Europe appears inevitable as Chinese automakers continue to expand their footprint, aiming to circumvent tariffs and enter local markets more effectively. European governments and local automakers are now faced with the challenge of navigating this complex and evolving scenario.