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“Limiting business to democratic countries is not a viable business model for manufacturers» automobiles, commented the president of volkswagen during a press conference where he indicated that the company would move more production to the United States and China, to the detriment of Europe.
The words of Herbert Diess, CEO of Volkswagen, were quoted by the Bloomberg agency on Tuesday. “let’s transfer more [produção] in China due to the situation in Europe“, confirmed, quoted by another agency, the Reuters.
However, Diess declined to comment on the risk that one day China will make a similar intervention in Taiwan – despite differences with Russia and Ukraine. The Volkswagen official said only that he did not believe China would take such a step.
“China has a keen interest in keeping borders open“, he pleaded. From Volkswagen’s point of view, on the other hand, it makes sense to bet on China. “I believe that it is an important asset for us to have a strong position in China. China is a mainstay for us,” the Volkswagen chairman said.
Herbert Diess predicted in a recent Financial Times interview that Russia’s invasion of Ukraine would lead to a new crisis in the auto industry, which has yet to recover from the impacts caused by the pandemic. This is also why, he added, the official has planned that if the war continues, that “it will be much worse for the economy of European countries than the pandemic was“, anticipating serious disruptions and failures in the distribution chains, which “can lead to enormous price increases”.