CHINESE carmaker Great Wall Motor plans to shutter its European headquarters in Munich in August and lay off about 100 workers.
The company, one of the largest independent auto manufacturers in China, is adjusting its European strategy as the electric vehicle market there becomes more challenging, it said in a statement on its website on May 31. About 100 members of its European staff will be let go, a company representative said on Monday (Jun 3).
Great Wall Motor and other Chinese manufacturers are facing the threat of higher import tariffs from the EU, which is due to announce preliminary results of an anti-subsidy investigation as soon as next week.
Tariffs would reduce the competitiveness of Chinese-made vehicles, even as demand for EVs cools following moves by countries like Germany and France to scale back or restrict subsidies.
While the company is not a leader among Chinese EV manufacturers who export to Europe, it cited numerous uncertainties in the region as a reason for pulling back. Great Wall Motors reportedly sold about 6,300 cars in Europe in 2023, excluding Russia, accounting for about 2 per cent of its overall exports.
German media first reported the company’s plans last week.
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The carmaker’s base operations in China will assume responsibility for providing support to European distributors and continue to explore new markets, the company said. BLOOMBERG
