AUTONEWS

BMW and Mercedes afraid of reprisals from the Chinese

The European Union, as well as the Americans, believes that the Chinese State is illegally subsidizing Chinese vehicles, especially electric ones. Hence, an investigation is underway into the injection of state funds into brands competing for Western export markets. This measure, controversial and capable of causing great discomfort among Asian authorities, is causing some “hives” in some of the brands that potentially benefit most from it, namely BMW and Mercedes.

The strange reaction of those responsible for the 2nd and 3rd largest German groups, after Volkswagen, is due to the fact that the Chinese authorities have threatened BMW and Mercedes to prevent the sale of top of the range products from both manufacturers. in China (the 5 and 7 Series, in addition to the E and S Class), if the European Union makes it difficult for Chinese brands to enter the Old Continent. This is even if Brussels limits itself to adopting much less “radical” measures than the Chinese authorities have imposed so far on European builders who intended to sell in China.

The threats from Xi Jinping's government led BMW CEO Oliver Zipse(image above) to argue with the Union that European industry does not need “protection” in the form of tariffs. Mercedes CEO Ola Källenius also agrees, even arguing that taxes on Chinese cars should be reduced.

The European Union plans to make a decision in November, with an initial position being taken as early as July. It remains to be seen whether they will choose to defend the interests of the majority and the builders, or defend the privileges of just a few, just because they are German — the country that is the biggest contributor to the Union. Remember that these two German builders are among the least have invested in battery-powered vehicles, as they are the only Europeans that do not (yet) have models designed on specific platforms for trams or their own production (or in partnership) of batteries (cells).

Renault responded, through its CEO Luca de Meo, to this position taken by BMW and Mercedes, arguing that manufacturers should unite in certain areas to combat Chinese brands, to reduce costs in areas as varied as, for example, production of cells, given that batteries continue to be “the most expensive part” of an electric vehicle.

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