International News 19/07
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EU to cut import tariffs on Chinese electric cars for Volkswagen and BMW?
The European Commission is considering a reduction in import tariffs on Chinese-made electric cars for Volkswagen and BMW, according to sources familiar with the matter. The commission is prepared to classify the two carmakers as cooperating companies, thereby making them eligible for a lower tariff of 20.8%, compared to the current 37.6% tariff. However, BMW's China-made electric Mini and Volkswagen's Cupra Tavascan were not included in the commission's analysis, resulting in them being subject to the highest tariff rate. The proposed compromise would be the first of its kind by the European Commission and is seen as a move that may negatively impact leading European carmakers, who produce cars in China and import them into Europe. The decision is not yet finalised, and Volkswagen and BMW have declined to comment.
Swatch Group profit falls 70% due to China's economic slowdown
Swatch Group Ltd, the parent company of luxury brands such as Omega and Blancpain, has reported a significant drop in sales and profits due to a slowdown in China. The company reported a 70% drop in operating profit and a 14% drop in sales for the first half of the year. Swatch Group CEO Nick Hayek attributed the decline to a drop in demand for luxury goods in China, as consumers avoid big-ticket purchases. Hayek revealed that the Chinese market, including Hong Kong and Macau, is expected to remain challenging for the luxury goods industry until the end of the year. Despite the difficult circumstances, Hayek is trying to retain its staff to be ready when the market recovers, but there is a possibility of job cuts if the situation worsens. Analysts point out that the flagship Omega brand is struggling due to increased competition from rival brands.
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