German state minister says higher tariffs could boost Chinese interest in VW plant

A German state minister said the EU should consider raising tariffs on cars built in China to spur Chinese automakers into partnering with European manufacturers such as Volkswagen. Dirk Panter, economy minister of Saxony—an eastern German state that hosts a VW plant—made the proposal in an interview published on Thursday by Bild. His comments came amid Volkswagen threats to close four German factories in coming years if no solution is found, including the all-electric Zwickau plant in Saxony. Volkswagen CEO Oliver Blume has suggested producing some Chinese-developed models in Europe and has discussed potential partnerships with Chinese carmakers as a way to reduce tariff pressure. Panter argued Chinese brands such as BYD are gaining share in Europe, including through popular plug-in hybrid models not covered by current EU tariffs on all-electric vehicles. He added that China should also accept responsibility for value creation and jobs in Europe.