Germany's Klingbeil pushes EU tariffs on Chinese hybrid cars

German Vice Chancellor Lars Klingbeil has urged the European Union to broaden its tariff measures on Chinese imports to cover hybrid cars, arguing that Volkswagen and other domestic manufacturers are being threatened by Chinese manufacturing subsidies.

Speaking at Volkswagen's headquarters in Wolfsburg, Klingbeil, who also serves as finance minister, said Germany should take a more assertive stance against unfair trade practices. "I am in favour of us standing up against unfair trade practices, and for Germany to adopt a different level of self-confidence and assertiveness towards countries that threaten our industry," he said.

He added that the EU would need to tighten local-content requirements and introduce duties on Chinese-made plug-in hybrid vehicles. The European Commission is currently reviewing its trade deficit with China, as industry groups press for an expansion of existing tariffs on Chinese electric vehicles to include plug-in hybrids, alongside new "Made in Europe" rules.

Klingbeil's remarks came during a meeting with Volkswagen works council leaders, amid a restructuring programme at the carmaker approved by its supervisory board earlier this month. The plan has drawn opposition from labour representatives and the state of Lower Saxony, Volkswagen's second-largest shareholder.

Under pressure to reduce manufacturing costs in Germany, labour representatives have argued that cutbacks alone will not secure the company's future and have called on the EU to shield local industry from an influx of cheap Chinese cars. Klingbeil described the agreed restructuring measures as only the beginning of an ongoing transformation.