BMW's CEO on Wednesday warned against imposing EU import duties on electric vehicles from Chinese carmakers, saying it could upend the bloc's Green Deal industrial plan and harm German carmakers which import cars made in China.
The European Commission, which oversees trade policy in the 27-nation EU, launched an investigation in October into whether fully electric cars manufactured in China were receiving distortive subsidies and warranted extra tariffs.
“You could very quickly shoot yourself in the foot,” CEO Oliver Zipse told reporters after the German premium carmaker reported quarterly results.
BMW imports Chinese-made Mini EVs and the iX3 into Europe.
Like its German rivals Volkswagen and Mercedes-Benz, BMW is heavily reliant on revenues from its Chinese business.
China is BMW's second-largest market after Europe, accounting for nearly 32% of sales in the first quarter.
“We don't think that our industry needs protection,” Zipse told analysts on Wednesday, adding that operating globally gives major carmakers an industrial advantage. “You can easily endanger that advantage by introducing import tariffs.”
In March, the commission started customs registration of Chinese EV imports, meaning they could be hit by tariffs from that point if the trade investigation concludes they are receiving unfair subsidies.
The probe is due to conclude by November, but the EU could impose provisional duties in July. Brussels should publish a summary of proposed provisional duties by June 5 and these duties would be imposed by July 4.
European Commission president Ursula von der Leyen said in Berlin on Wednesday that Europe needed to take steps to prevent China from flooding the bloc's market with subsidised electric vehicles.
French President Emmanuel Macron and Von der Leyen urged Chinese President Xi Jinping on Monday to ensure more balanced trade with Europe.
Zipse told analysts that BMW and other carmakers have “bilateral dependencies not only on the final product, but also on the component and raw material sides”.
Imposing duties could backfire as new EU CO2 emission standards that will require more EVs — that are reliant on Chinese battery materials — kick in next year.
“There will be no single car in the EU without components from China,” Zipse said.
He said imposing tariffs would undo the EU's industrial plan to ensure the bloc is a front-runner in cutting carbon emissions and developing the technology required to do so.
“There is no Green Deal in Europe without resources from China,” Zipse said.
EU tariffs on Chinese EVs could backfire, warns BMW boss Zipse
Image: Supplied
BMW's CEO on Wednesday warned against imposing EU import duties on electric vehicles from Chinese carmakers, saying it could upend the bloc's Green Deal industrial plan and harm German carmakers which import cars made in China.
The European Commission, which oversees trade policy in the 27-nation EU, launched an investigation in October into whether fully electric cars manufactured in China were receiving distortive subsidies and warranted extra tariffs.
“You could very quickly shoot yourself in the foot,” CEO Oliver Zipse told reporters after the German premium carmaker reported quarterly results.
BMW imports Chinese-made Mini EVs and the iX3 into Europe.
Like its German rivals Volkswagen and Mercedes-Benz, BMW is heavily reliant on revenues from its Chinese business.
China is BMW's second-largest market after Europe, accounting for nearly 32% of sales in the first quarter.
“We don't think that our industry needs protection,” Zipse told analysts on Wednesday, adding that operating globally gives major carmakers an industrial advantage. “You can easily endanger that advantage by introducing import tariffs.”
In March, the commission started customs registration of Chinese EV imports, meaning they could be hit by tariffs from that point if the trade investigation concludes they are receiving unfair subsidies.
The probe is due to conclude by November, but the EU could impose provisional duties in July. Brussels should publish a summary of proposed provisional duties by June 5 and these duties would be imposed by July 4.
European Commission president Ursula von der Leyen said in Berlin on Wednesday that Europe needed to take steps to prevent China from flooding the bloc's market with subsidised electric vehicles.
French President Emmanuel Macron and Von der Leyen urged Chinese President Xi Jinping on Monday to ensure more balanced trade with Europe.
Zipse told analysts that BMW and other carmakers have “bilateral dependencies not only on the final product, but also on the component and raw material sides”.
Imposing duties could backfire as new EU CO2 emission standards that will require more EVs — that are reliant on Chinese battery materials — kick in next year.
“There will be no single car in the EU without components from China,” Zipse said.
He said imposing tariffs would undo the EU's industrial plan to ensure the bloc is a front-runner in cutting carbon emissions and developing the technology required to do so.
“There is no Green Deal in Europe without resources from China,” Zipse said.
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