Let's find common ground with China on EVs, Mercedes boss says

Ola Källenius told CGTN he hopes political leaders can make an agreement to reduce tariffs on Chinese electric vehicles and open up markets.

Transcript

00:00It is very difficult to foresee what the results will be of negotiations in all directions

00:06between the US and the EU, EU and China.

00:10What we are saying as a strong global automotive industry and the European automobile companies

00:17are the true global champions with a footprint in all regions.

00:20We're invested in the United States, we're of course invested in our home market in Europe,

00:24but we're also deeply invested in China.

00:28Our wish towards policymakers is to take a step back and look at what has made us successful,

00:33what has created jobs, created growth, created tax revenue.

00:38Much of that has happened in the last 30 years with opening up markets, so let's not forget

00:44about that.

00:46Make the playing field level, no question, and where there are issues to be addressed,

00:51that's legitimate, but let's not forget what the recipe for success was.

00:56The CEO of VW, Seat Brand, said this month that any additional tariffs on China-made

01:02EVs are going to cause collateral damage to European companies and to European jobs.

01:07What's your take?

01:10The Chinese supply network, or rather the global supply network, is so interconnected

01:17that building a wall in any one direction can create disruption and unwanted side effects.

01:27So what we need to do is to look at the supply chains, of course make sure that the playing

01:31field is level, I don't think anybody's arguing with that, but be thoughtful when we craft

01:37trade policy.

01:38And of course this year marks the 50th anniversary of diplomatic ties between the EU and China.

01:47We've been talking to China's Commerce Minister Wang Wentao, what's the outlook then for European

01:52car makers in China?

01:56The Chinese car market I think probably is the most competitive car market in the world

02:01now.

02:02One of the reasons is so many new entrants, it's like a hundred companies plus that is

02:06vying for this market and also vying for the new EV market.

02:11We have every opportunity to partake in that competition and I think the recipe for success

02:17if you want to be one of the winners in that game, and that is what we're doing at Mercedes-Benz,

02:23is you need to double down on what the Chinese customer is looking for.

02:27So if you have adjustments to be made to your products to better cater for the Chinese customers,

02:32do that.

02:33Do it on location so you can quickly react to what the market needs.

02:37For instance in the digital space, we have built up a significant R&D team in China for

02:42China to be able to react to the market, but also take advantage of the cost structure

02:47that you have in China.

02:50There is nothing impeding us from doing that, so in my meeting with Minister Wang we talked

02:56about that.

02:58We said very clearly our intent to increase our investments in China, but also to say

03:04to him and his European counterparts, you're in a trade dispute right now, it was started

03:09by the EU, see if you can find common ground.