On May 8, executives at BMW and Volkswagen warned of the European Union's imposition of import tariffs on electric vehicles made by Chinese automakers, saying they could undermine the EU's "Green Deal Industrial Plan" and harm the interests of automakers who import Chinese-made cars, according to media reports.
The European Commission, which oversees trade policy in the EU27, launched an investigation in October to determine whether China-made battery electric vehicles receive large and unfair subsidies to determine whether additional tariffs are needed on them.
BMW CEO Oliver Zipse told reporters after the release of its first-quarter earnings report: "Soon, the EU may see the cost of doing so." "BMW is currently importing the Chinese-made electric version of the MINI and iX3 to Europe.
Like Volkswagen and Mercedes-Benz, which are also from Germany, BMW is very dependent on revenues from its Chinese operations. China is BMW's second-largest market after Europe, accounting for nearly 32% of sales in the first quarter.
On May 8, Zipzer told analysts: "We don't think European industries need to be protected. He added that operating on a global scale gives large automakers an industrial advantage "that could easily be threatened by import tariffs."
Zipzer also said that BMW and other automakers "have bilateral dependence on China, not only in terms of final products, but also in terms of components and raw materials."
Zipzer pointed out that imposing tariffs could backfire because the EU's new carbon dioxide emissions standard, which requires automakers to produce more electric vehicles, will be implemented next year, while European automakers rely heavily on battery materials from China. "There isn't a single car in the EU that doesn't use components from China," Zipzer said. "
Mr Zipzer said the tariffs would undermine the EU's industrial plan, which aims to ensure the EU is ahead of the curve in reducing carbon emissions and developing the technology it needs. "Without China's resources, there would be no European Green Deal industrial plan," he said. "
Volkswagen, Europe's largest automaker, which is also heavily dependent on the Chinese market, has also warned that potential tariffs are generally risky.
Thomas Schaefer, CEO of the Volkswagen brand, said at the Future of the Car Summit: "Tariffs always lead to retaliation. "
In March, the European Commission began customs registration of Chinese EVs imported, which means that if the trade investigation finds that Chinese EVs have received unfair subsidies, the EU may impose tariffs on Chinese EVs after the investigation is completed.
The investigation will conclude in November this year, but the EU may impose temporary tariffs in July. The EU should publish a summary of the proposed interim tariffs by June 5 and impose them by July 4.
European Commission President Ursula von der Leyen said in Berlin on May 8 that Europe needs to take steps to prevent subsidized Chinese electric vehicles from flooding the EU market.
