AUTONEWS

Hand in hand with the Chinese, BMW has sued the European Union (EU) over the increase in tariffs

BMW, which has received millions from Germany and the European Union, has joined forces with Chinese brands, its biggest threat, to sue Europe over the tariffs it is imposing on cars imported from China.

Hand in hand with the Chinese companies Geely, SAIC and BYD, BMW has sued the European Union (EU) over the increase in tariffs, already in force, for electric vehicles produced in China that benefited from aid considered illegal by the World Trade Organization. According to Reuters, the German manufacturer filed the complaint precisely on the last day of the deadline to contest the measure.

This is yet another attempt by the German brand to disregard EU directives, to delay the adoption of the CO2 emissions limits set for 2025, in addition to defending the interests of Chinese manufacturers. This is probably to prevent the Chinese government from retaliating and failing to protect the brand's top-of-the-range cars exported from Germany.

In addition to this brand, the BMW Group also includes Mini and Rolls-Royce, and for decades it has received aid from Germany, the United Kingdom and the European Union as a whole to optimise and develop its presence in Europe. It is therefore strange that it is now publicly defending the best interests of China and its manufacturers. This is at a time when the EU is seeking precisely to harmonise market laws and reduce the advantage enjoyed by Chinese manufacturers, especially those that have received illegal state aid.

BMW sales fell by 2.3% worldwide in 2024, with 13.4% of the drop being attributable to China, a market whose (less favourable) financial situation is leading consumers to move away from more expensive imported products and opt for more affordable local vehicles.

The three Chinese manufacturers and BMW are contesting the additional taxes imposed on electric vehicles produced in China, which includes all vehicles from Chinese brands, as well as models such as the BMW iX3 and the Mini Cooper SE and Aceman, also manufactured in the Asian country. Since these are produced in joint ventures with Chinese state manufacturers, they are subject to an additional tax of 20.7%, while BYD models pay an additional 17% tax (in addition to the usual 10%), Geely 18.8% and SAIC 35.5%.

The additional taxes imposed by the European regulator are a “drop in the bucket” when compared to the 100% that the Americans imposed on models imported from China. They are also a “bargain” when compared with the conditions that the Chinese state imposed for years on European (and American) manufacturers to freely market their cars in China, which involved building a factory in the country and “offering” 50% to a Chinese state-owned brand, which would then have access to their technology. As expected, some Chinese manufacturers have begun to outline strategies to set up their own factories in Europe, without being obliged to have a local partner or to give up part of their production to a European manufacturer. Chery has already begun to manufacture some of its models in Spain, in a former Nissan factory, while BYD is finishing the construction of a factory in Hungary, from where some of the vehicles destined for the EU markets will be produced.

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