Oliver Zipse warns EU against imposing import duties on electric vehicles from Chinese manufacturers
08 May 2024 - 17:32
byNick Carey and Christina Amann
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London — BMW’s CEO warned on Wednesday against imposing EU import duties on electric vehicles (EVs) from Chinese vehicle makers, saying it could upend the bloc’s Green Deal industrial plan and harm German companies that 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 receive distortive subsidies and warrant extra tariffs.
“You could very quickly shoot yourself in the foot,” CEO Oliver Zipse told reporters after BMW reported quarterly results.
BMW imports Chinese-made Mini EVs and the iX3 into Europe. Like its German rivals Volkswagen and Mercedes-Benz, it is heavily reliant on revenue 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 on a global basis gives major vehicle makers an industrial advantage. “You can easily endanger that advantage by introducing import tariffs.”
In March, the European 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 vehicle makers had “bilateral dependencies not only on the final product, but on the component side and raw material side”.
Imposing duties could backfire as new EU carbon dioxide emission standards kick in next year. The tougher standards will require more EVs on the roads, and those vehicles will be reliant on Chinese battery materials.
“There will be no single car in the EU without components from China,” Zipse said.
He said that 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.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
BMW urges Europe not to shoot itself in the foot
Oliver Zipse warns EU against imposing import duties on electric vehicles from Chinese manufacturers
London — BMW’s CEO warned on Wednesday against imposing EU import duties on electric vehicles (EVs) from Chinese vehicle makers, saying it could upend the bloc’s Green Deal industrial plan and harm German companies that 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 receive distortive subsidies and warrant extra tariffs.
“You could very quickly shoot yourself in the foot,” CEO Oliver Zipse told reporters after BMW reported quarterly results.
BMW imports Chinese-made Mini EVs and the iX3 into Europe. Like its German rivals Volkswagen and Mercedes-Benz, it is heavily reliant on revenue 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 on a global basis gives major vehicle makers an industrial advantage. “You can easily endanger that advantage by introducing import tariffs.”
In March, the European 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 vehicle makers had “bilateral dependencies not only on the final product, but on the component side and raw material side”.
Imposing duties could backfire as new EU carbon dioxide emission standards kick in next year. The tougher standards will require more EVs on the roads, and those vehicles will be reliant on Chinese battery materials.
“There will be no single car in the EU without components from China,” Zipse said.
He said that 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.
Reuters
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