Exclusive-Volkswagen's CUPRA 'at risk' from planned EU tariffs, says brand CEO

By Victoria Waldersee

BERLIN (Reuters) - An electric vehicle made in China by Volkswagen's CUPRA brand would be "wiped out" if the European Commission followed through with planned import tariffs of 21.3% on the vehicle, the brand's CEO told Reuters.

Raising the price of the Tavascan, an all-electric SUV selling for around 52,000 euros ($57,500), to cover the costs was not an option in the current European economic environment, said Wayne Griffiths, who heads up the SEAT and CUPRA brands under Volkswagen's SEAT S.A. subsidiary.

Nor was moving production to another location after the company had already invested in building up capacity at Volkswagen's Anhui plant, a majority-owned joint venture with China's JAC Automobile Group.

Without the projected Tavascan sales, CUPRA would miss EU-mandated carbon dioxide reduction targets next year and so face heavy fines, forcing it to cut output with a possible impact on employment at its base in Spain, Griffiths said.