[volkman10]

BMW, Mercedes against EU tariffs on Chinese EVs, say it could backfire.

Although EU tariffs are supposed to support the auto industry, German automakers are saying, "No, thanks"

BMW CEO Oliver Zipse says the German auto industry doesn’t need protection in the form of EU tariffs against Chinese components.
Mercedes’ CEO agrees, claiming that, if anything, import duties for the Asian superpower should be reduced.
The EU is set to make a final decision on tariffs in November.

We don’t think that our industry needs protection- BMW CEO Oliver Zipse


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[SmartCat]

Originally Posted by volkman10

BMW, Mercedes against EU tariffs on Chinese EVs, say it could backfire. Although EU tariffs are supposed to support the auto industry, German automakers are saying, "No, thanks"

BMW/Mercedes constitute a tiny percentage of EU automotive industry in terms of car production (and hence jobs). The major players are VW, Stellantis, Ford, Renault etc

BMW/Merc are just looking out for their own self-interests. They are worried that their cars produced in EU & exported to China will be subject to counter-tariffs.

[volkman10]

Originally Posted by SmartCat

--The major players are VW, Stellantis, Ford, Renault etc

--

All German auto makers resist on imposing tariffs on Chinese cars.

Volkswagen warns Brussels against raising tariffs on Chinese electric cars

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[volkman10]

Germany and Sweden decide to abstain from voting while Italy, Spain back EU duties on China-built EV imports.
The vote is non-binding, but it could influence the final conclusion of the European Commission, which oversees the bloc's trade policy.

A number of EU governments have been hesitating.

Poland's development ministry said Warsaw's position was still the subject of consultations between ministries. Greece had yet to take a position.

The Commission will continue its investigation and determine whether to propose definitive duties that would typically apply for five years.

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[volkman10]

EU may cut China EV import tariffs for VW, BMW.

The move would be a compromise on tariffs that will hurt European automakers which export EVs from China to Europe.

The European Commission was willing to classify the two carmakers as so-called cooperating companies, the sources said, making them eligible for a 20.8 percent tariff on their China-made models, down from a tariff of 37.6 percent under current plans.

BMW's China-made electric Mini and VW's Cupra Tavascan, built in VW Group's factory in Anhui, China, were not part of Brussels' sample analysis in the run-up to the tariff announcement, which means they were automatically subjected to the highest tariff level.

If agreed, it would be a first, early compromise by Brussels on tariffs that will hurt some of Europe's top car manufacturers because they make cars in China and import them to the region.

The German car industry has also opposed the tariffs because it is worried about retaliation from China, where German automakers made a third of their revenue last year. U.S. carmaker Tesla has asked for its own tariff rate.

The decision was not yet final, said the two sources, who spoke on condition of anonymity due to the sensitivity of the matter.

Brussels has until autumn to make a final decision on the tariffs, which are preliminary for now.


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[volkman10]

Europe wants more tariffs on Chinese EVs but a secret vote shows how divided it is.

The Commission is expected to take this into account when deciding whether to follow up with definitive duties in what is the EU’s highest-profile trade case yet.
If it does advocate duties at the end of its investigation, it will come up for a binding vote among the EU members and would be imposed unless a qualified majority of 15 member countries representing 65 per cent of the EU population vote against it.

If the voting pattern of the advisory vote were repeated, definitive duties, typically applicable for five years, would then enter force.

- A dozen EU members voted in support of the tariffs, four voted against and 11 abstained.

- The Commission’s arguments that trade must be on a level playing field, but also mindful of the risk of a trade war with China.

- In the vote, France, Italy and Spain supported the tariffs, while Germany, Finland and Sweden abstained

Beijing has threatened wide-ranging retaliation.

The Commission will continue its investigation for another three months.

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