Brussels tariff could hit Spain-designed Cupra

The Cupra Tavascan made by Spain’s Seat, a Volkswagen subsidiary, could be “wiped out” by EU tariffs, according to chief executive Wayne Griffith.

All Cupra models are designed in Spain but not all are produced at Seat’s Martorell (Barcelona) plant.  Some, including the all-electric Tavascan, are made in China.

That means the Tavascan would be hit by the 21.3 per cent tariff introduced to offset the Chinese government’s “unfair” subsidies for EVs.

A Tavascan sells for approximately €52,000 and raising its price would be unfeasible in the existing economic environment, Griffiths said. Volkswagen would be unable to absorb the additional costs, he added.

Relocating production was impracticable owing to the company’s investment in its Anhui plant, Griffiths stated, while warning that Cupra could miss the EU’s carbon dioxide reduction targets next year and face heavy fines.

“It puts the whole financial future of the company at risk,” he warned.