European carmakers are urging Brussels to ease regulations to help them avoid buying carbon credits from rivals at increasingly high prices.
The electric car company run by Elon Musk is facing increasing competition, but investors have focused mostly on the prospects for Tesla’s self-driving technology.
The American automaker said the cost-cutting measure would help it compete with Chinese rivals in the face of slowing demand for electric vehicles.
The new agreement builds on an earlier announcement in which the German automaker said it would invest up to $5 billion in Rivian, a maker of electric vehicles. The new venture brings them closer.
A surge in power use worldwide could make it harder for nations to slash emissions and keep global warming in check.
Germany’s largest automaker rode a wave of strong sales for years, but lagging demand and pressure from China are forcing it to consider layoffs.
Beijing’s action came days after European nations moved toward tariffs on electric vehicles from China, and it included a threat to also hit pork and car imports.
Beijing’s action came days after European nations moved toward tariffs on electric vehicles from China, and it included a threat to also hit pork and car imports.
The automaker reported a gain of 6.4 percent for the latest quarter, its first such increase this year.
BYD, which leads China’s electric vehicle sector, is constructing a plant in Hungary while its Chinese rivals expand through joint ventures in Europe.
The Swedish battery manufacturer said it would eliminate jobs and seek partnerships as it grapples with competition from China.
A Rio Tinto mine that Europe sees as a critical source for electric vehicle batteries has been the target of enormous protests. “I don’t need green cars. I need green apples and green grass,” said one opponent.
The European Union took the next step toward collecting heavy tariffs on electric vehicles, ahead of a final decision in October.
The tariffs have been expected for months, but many European automakers warned they will drive up prices for consumers and set off a trade war with China.
Automakers are exploring energy storage as a way to help utilities and save customers money, turning an expensive component into an industry asset.
The United States and Europe are trying to catch up to a rival skilled in using all the levers of government and banking to dominate global manufacturing.
Treasury Secretary Janet L. Yellen warned that China’s industrial strategy posed a global threat that requires a united response.
Automakers in the United States and their supporters welcomed President Biden’s tariffs, saying they would protect domestic manufacturing and jobs from cheap Chinese vehicles.
The president has proposed new barriers to Chinese electric vehicles, steel and other goods that could undermine his manufacturing agenda.
Ursula Von der Leyen, the European Commission president, pushed Beijing to help rein in Russia’s war in Ukraine after meeting with the Chinese and French leaders in Paris.