According to Reuters, a document on the European Court of Justice's website shows that German automaker BMW has joined Chinese automakers BYD, Geely, and SAIC Motor in filing a lawsuit with the General Court of the Court of Justice of the European Union (CJEU) to challenge the EU's additional tariffs on electric vehicles (EVs) manufactured in China. Reports also indicate that Tesla, the American automaker, has lodged a complaint against the tariffs with the EU.
The European Commission stated that its year-long anti-subsidy investigation has gathered evidence proving that government support has helped China's EV industry become a global leader.
Olof Gill, spokesperson for the European Commission's trade affairs, said that the EU is prepared to face these legal challenges. "We are ready. The EU is a union built on rules. If they want to take us to court, they are free to do so."
The primary objective of these lawsuits is to invalidate the EU's additional tariffs. If the automakers succeed, this could be the first step in recovering financial losses caused by the EU's tariff measures.
On average, lawsuits in the General Court of the EU take about 18 months to process, and appeals can be filed. However, no further details about the cases are currently available on the EU Court's website.
As major regions worldwide strive to protect their domestic auto industries and encourage consumers to buy locally produced vehicles, the EU imposed additional import tariffs on Chinese-made EVs at the end of October following its anti-subsidy probe. The tariff rate for BMW was set at 20.7%, while Tesla, after providing justification for an individual review, received the lowest additional tariff of 7.8% on its Chinese-made EVs. It is important to note that these tariffs are imposed on top of the EU's standard 10% import duty for cars.
Tesla manufactures vehicles at its Shanghai Gigafactory and exports many of its China-produced cars to regions outside Asia, including Europe. BMW produces the electric Mini Cooper and Mini Aceman in China.
SAIC Motor is expected to challenge the highest tariff rate of 35.3% imposed on its EVs by the EU. In addition, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), which represents Chinese EV manufacturers, has also filed a complaint with the EU.
