BMW CEO Oliver Zipse has been vocal about the potential harm of imposing import duties on electric vehicles from China. The head of the Munich-based luxury brand frequently expresses his opposition to the European Union’s decision to heavily tax cars shipped from the People’s Republic. During this week’s conference call for the half-year report, the 60-year-old executive claimed that the decision leads the industry down a “dead-end street.”
The idea behind the tariffs is to make European automakers more competitive by increasing the prices of China-imported EVs. However, Zipse argues that this decision will ultimately backfire, given that European-based car companies are manufacturing vehicles in China. The BMW Group, for instance, has a few models produced there, such as the iX3, MINI Cooper E/SE, and the MINI Aceman.
Zipse believes that tariffs would also hinder the decarbonization process, which is the ultimate goal for all parties. Furthermore, European automakers depend on Chinese suppliers for certain raw materials. Implementing import duties could prompt Chinese partners to raise prices, creating an unfavorable situation for everyone involved.
“The introduction of additional import duties, like those recently imposed by the EU, leads us down a dead-end street “ and will ultimately not make European manufacturers any more competitive. On the contrary, EU tariffs on BEVs from China instead penalize European manufacturers like the BMW Group “ since they also produce vehicles in China for the European market.
Additional customs duties also limit the choice of electric cars for European customers and could therefore slow down decarbonisation in the transport sector. Measures always lead to countermeasures. Let us not forget that implementation of the Green Deal in Europe also relies heavily on raw materials and technology from China, in particular.”
According to current plans, the proposed tariff is a substantial 37.6%. However, Reuters reports that the European Commission could classify the BMW Group as a cooperating company, reducing the import duty to 20.8%. The VW Group would also benefit from the lower tariff for its Cupra Tavascan electric crossover.
It’s worth noting the electric Cooper hatchback and the Aceman will be manufactured in Oxford, UK from 2026. That will eliminate any import duties and should increase the chances of seeing the two models in the United States.
Source: BMW
First published by https://www.bmwblog.com
