Seat warns EU tariffs could lead to job losses

Seat Group, a car company owned by Volkswagen, is facing serious challenges due to new EU tariffs on electric vehicles (EVs) imported from China. The company warns that these tariffs may lead to layoffs and the possibility of stopping production of popular models like the Ibiza and Arona. The new tariffs, which have increased to 20.7%, were introduced to protect European car makers from being undercut by Chinese brands. Currently, Seat's Tavascan SUV, which costs £47,000, is made in China and is affected by these tariffs. CEO Wayne Griffiths expressed concern that the tariffs could hurt the company's ability to meet emissions targets and could lead to heavy financial losses. Griffiths stated that if the tariffs remain, Seat might need to make difficult decisions, including workforce reductions and cutting back on its combustion engine vehicles. He emphasized that the company is currently absorbing the costs of the tariffs and cannot sustain this approach for long. He noted that European legislators are aware of the impact these tariffs have on companies like Seat and their willingness to negotiate potential solutions. Griffiths mentioned that Tesla has successfully reduced tariffs on its China-made EVs, indicating there may be paths to lowering costs. The Spanish government is also involved and supportive of discussions aimed at finding a resolution. Seat is hopeful for cooperation with the European Commission to navigate the complex regulatory environment.