Scholz rejects protectionism at Opel's 125th anniversary

German Chancellor Olaf Scholz, speaks at a ceremony to mark 125 years of Opel vehicle production at Opel's headquarters. Opel has produced more than 75 million vehicles since 1899. Andreas Arnold/dpa

Germany does not believe in closing its markets to foreign competition, Chancellor Olaf Scholz said at an event on Saturday marking the 125th anniversary of carmaker Opel's Rüsselsheim plant.

"We do not close our markets to foreign companies, as we don't want that in reverse for our companies after all," Scholz said during a ceremony at the plant, south-west of Frankfurt.

Protectionism and customs barriers in contravention of trade rules "simply make everything more expensive and all of us poorer," he said.

Expressing confidence in the German automotive sector, Scholz said he had no doubt that Germany would continue to lead in this century as well, "if we rely on progress and renewal." Free and fair global trade was needed for this, he said.

Scholz's remarks contrasted with the special import duties of 100% imposed by the United States on Chinese electric vehicles, amid accusations that Beijing is distorting competition in electric vehicles through state subsidies.

The European Union is also probing the impact of Chinese imports on the European market in the sector.

Opel chief executive Florian Huettl said the company planned to expand electric vehicle capacity. "From 2025, every new Opel model will be purely battery electric," he told the event.

At the end of April, Huettl set a target for Opel of offering only electric vehicles in its European range from 2028. But the sector was also dependent on policy decisions, he said, after Germany's subsidies on electric cars expired in December.

The occasion was celebrated with an open day, with high-profile guests in attendance. Visitors will be able to gain an impression of how the manufacturer is helping to shape the transition to electromobility, the company said.

In 1899, the then sewing machine and bicycle manufacturer built its first car, the Patentmotorwagen System Lutzmann. Opel had previously taken over the works of pioneer Friedrich Lutzmann and relocated it from Dessau to Rüsselsheim.

After almost 90 years as part of the US group General Motors, Opel was taken over by the Peugeot parent company PSA in 2017, which has since merged with Fiat-Chrysler to form Stellantis.

The only German brand in the US-European group returned to profitability several years ago after thousands of job cuts and a downsizing programme for its sites elsewhere in Germany.

(L-R) Boris Rhein, Minister President of Hesse, Xavier Chereau, Chairman of the Supervisory Board of Opel Automobile GmbH, Florian Huettl, Managing Director of Opel Automobile GmbH, German Chancellor Olaf Scholz, Carlos Tavares, CEO of Stellantis, and John Elkann, Chairman of the Supervisory Board of Stellantis, take part in a ceremony to mark 125 years of Opel vehicle production at Opel's headquarters. Opel has produced more than 75 million vehicles since 1899. Andreas Arnold/dpa
Florian Huettl (L), Managing Director of Opel Automobile GmbH, and German Chancellor Olaf Scholz (C) inspect production at a ceremony to mark 125 years of Opel vehicle production at Opel's headquarters. Opel has produced more than 75 million vehicles since 1899. Andreas Arnold/dpa
German Chancellor Olaf Scholz makes a government statement on the "current security situation" in a plenary session of the German Bundestag. Kay Nietfeld/dpa