Monday, September 16, 2024

Volkswagen brand may be closed by new EU rule

The car is designed in Spain but built in China. And it could become a fatal problem for Cupra, which must pay penalty duties for the same reason.

Cupra emerged 6 years ago from Seat's shadow as another one of the Volkswagen Group's many brands. But now life can pass.

Cupra's new electric car Tavascan is well enough designed and conceived in Spain. But because of Volkswagen's joint venture in China, the car is built there.

And this means that Cupra is hit by a 21.1 percent penalty duty. But Wayne Griffiths, who is the managing director of both Seat and Cupra, refuses to raise the price to compensate for the penalty.

He tells Reuters that.

READ ALSO: The police caught 1,372 drivers in illegal lanes in 72 minutes

– The intention was to protect the European car industry. But it seems to have the opposite effect. We will have to find a solution, says the director.

Griffiths claims that Cupra is in dialogue with both the EU Commission, the Spanish government summit and the German ditto.

In Denmark, Tavascan costs from just under DKK 360,000, and that price will therefore not change. Griffiths refers to the general economic climate. Cupra probably won't be able to afford to raise prices either if you want to compete with anyone else.

At home, Semler, which imports the Volkswagen Group's brands in Denmark, decided to fire 9 Seat dealers at the latest in 2023. You can read more about how it relates to the Cupra brand here .

Read more exciting news from and about the world of cars right here!

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