China Agrees To EV Concessions For German Automakers

JUN 6 2017 BY STEVEN LOVEDAY 12

Germany and China will work together to fight climate change, and expand their partnership amidst U.S President Donald Trump’s decision to leave the Paris deal behind.

Keeping their strong position in China is critical to German automakers BMW, Daimler, and Volkswagen. This week, at the Germany-China Summit, agreements were made that will help German automakers to move forward as previously planned. China’s willingness to make concessions to Germany is like a slap in the face to President Trump.

China was enamored with the Volkswagen BUDD-e concept. The  quota extension deal will be favorable for VW since its MEB platform won’t be ready until 2019 or 2020.

An electric vehicle quota set by China, which calls for eight percent of vehicles to be ZEVs by 2018, 10 percent by 2019, and 12 percent by 2020, will be pushed back a year. This is good news for German automakers that are just now getting serious about EVs.

China Premier Li Keqiang met with German Chancellor Angela Merkel in Berlin last week, to work a solution. The two decided that at this point, it’s more advantageous to work together for the benefit of all. Merkel explained that China and Germany share similar beliefs when it comes to encouraging electric vehicle adoption, and protecting the environment.

Keqiang concluded that China will give the automakers until 2019 to fulfill the ZEV obligations. Specific details have not yet been released, however it was explained that German automakers that cannot yet meet quotas will be allowed to ramp up electric vehicle production, and make up for the quotas in the future.

This deal keeps German automakers in the Chinese automotive market, while also encouraging them to move forward with electrification, in order to maintain future market strength. Dieter Zetsche, CEO of Daimler, announced earlier that China was amicable related to adjusting the electric car quotas. He told Reuters:

“What we talked about was the timeline, the pace of this transition. I think we reached a result which is satisfactory for everybody.”

During the summit in Berlin, Daimler also signed a deal with Chinese partner BAIC Motor Corporation to upgrade the Mercedes factory in Beijing for electric car manufacturing.

Source: Reuters

Categories: China, General

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12 Comments on "China Agrees To EV Concessions For German Automakers"

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FISHEV

Just because Trump is “our president” doesn’t mean we support his crazy policies. China is doing the world a service by mandating EV (non-polluting) cars and TRYING for fix a world problem. By doing it in the world’s largest market China can counter the bad policies of Trump/GOP (in fairness GOP has been against the science of addressing global warming not just Trump). This will help Tesla, GM, Ford in the US by creating an EV market that they can build and sell their cars into even as the US market shrinks due to bad policies of Trump.

Mark C

***mod edit (Jay Cole)***

/agreed, adjusted … thanks for the note

***mod edit***

pjwood1

What else would you do if you were Germany, and Trump told you to be ashamed of your success at free trade? Seek development in other markets, of course.

A good link to forward Trump fans, if you’re concerned about IEV’s pleasant atmosphere:
https://www.reuters.com/article/us-germany-china-autos-idUSKBN18S4OA

R.S

Wow, China really has big plans. I’d have liked there to be no delay, but to be honest 8% still seems ambitious for 2019.

California only estimates 8% EVs for 2025, to fulfill their ZEV goals. 10 years ago ,who would have thought China to have bigger plans, than California, when it comes to EVs.

ModernMarvelFan

Efficiency of authoritarian government is a double edge sword. When it swings in your favor, it is fast/efficient/swift. When it is against you, it is fast/painful/ruthless.

Same with Democracy, sometimes you get a great leader and sometimes you get a Con Man like Trump. But in the long run, hopefully, it isn’t ran by idiots.

But the movie idiocracy starts to look like documentaries…

unlucky

German car makers ask China to accept big talk instead of action.

Bizarrely, China agrees.

R.S

Well, 8% in 2018 is pretty insane. 8% in 2019 is still about as much as California demands in 2025. And all that comes out of nowhere. The car industry just can’t cope with that and China is nice enough to understand that.

And German auto makers still lack EVs to sell there. If they are compliant in 2019, it would still be more than impressive.

Hauer

Lazy Germans delay once again.

Serial anti tesla troll thomas

Why does Elon not take this change to sell his poor quality EVs in China?

Dav8or

He does sell his poor quality EVs in China.

Ryan

So after reading the actual article, I’m kinda mortified. I’m all for the rest of the world uniting on climate change, but… basically VW/Audi wasted R&D effort on diesel for years, scammed consumers with TDI dieselgate, and make arrogant vapourware announcements about their future amazing vehicles, but the Chinese are willing to let them off the hook for quotas now … because Trump? Sounds fishy.

A pure propaganda story – keep in mind that China has “unfair” mandates that say you need to have a Chinese partner to sell your car – so if they did not do this they would put their people out of work – the left sporting their blinders seize on the spin of this story as a further indication that the US is falling behind – get real.