Volkswagen’s SEAT brand has issued a dire warning: 1,500 Spanish jobs are at stake if the European Union doesn’t lower tariffs on electric vehicles (EVs) imported from China. The additional levy is not only eroding profits but could also push the brand to slash production, jeopardizing its ability to meet EU emissions targets.
SEAT CEO Wayne Griffiths revealed that the current 20.7% tariff, implemented in October 2024, adds to the existing 10% tariff, making EVs like the CUPRA Tavascan nearly 30% more expensive. “We don’t have much time,” Griffiths said. “We need to get to a solution within the first quarter.” Without relief, the loss-making Tavascan could be pulled from the lineup, leaving SEAT unable to meet EU emissions standards and risking costly penalties.
The CUPRA Tavascan, produced in Volkswagen’s Anhui plant in China, sells for around €50,000 to €60,000. The tariffs have already cost SEAT hundreds of millions of euros, pushing the company to miss its 2024 financial targets. Griffiths stated the increased costs would continue to hit profits into 2025, exacerbating SEAT’s challenges.
Jobs on the Line
SEAT‘s financial struggles aren’t just a corporate issue—they directly affect Spanish workers. If the Tavascan is cut, SEAT would need to scale back production of combustion engine vehicles to meet emissions limits. This could result in layoffs affecting approximately 1,500 employees.
“We are trying to protect our workforce, but this tariff makes it almost impossible,” Griffiths said. The potential job losses would not only impact SEAT’s Martorell plant but ripple through Spain’s automotive supply chain.
EU Pressure Intensifies
Griffiths and Volkswagen Group executives are in regular talks with EU officials to push for tariff reductions. Spain’s Prime Minister Pedro Sanchez has personally appealed to EU Commission President Ursula von der Leyen to resolve the issue, citing the severe economic and employment impacts.
While the European Commission has yet to comment, the pressure is mounting. Industry insiders argue the tariff—meant to protect European carmakers—has instead hurt them by penalizing domestically owned brands that rely on cost-efficient production in China.
Balancing Sustainability and Viability
Pulling the Tavascan would also jeopardize SEAT’s compliance with strict EU fleet emissions targets. Without the EV in its lineup, SEAT would struggle to reduce average fleet emissions, potentially facing millions in fines.
Griffiths stressed the importance of finding a solution that ensures competitiveness. “The tariff needs to be as close as possible to the original 10%,” he said.
For now, the fate of the CUPRA Tavascan—and the livelihoods of thousands of workers—hangs in the balance as SEAT races against the clock to find a resolution.
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