Chairman of BMW: If tariffs are imposed on Chinese electric vehicles, the EU will soon shoot itself in the foot

Observer.com

2024-05-08 22:34Posted on the official account of Shanghai Observer.com

The EU's wielding of the "tariff stick" on China's electric vehicles has caused widespread concern. BMW Group Chairman Oliver Zipse urged the EU not to use tariffs on Chinese electric vehicles on May 8, local time, otherwise it will not only subvert the EU's green deal industrial plan, but also hurt German automakers who import Chinese-made cars, which can be called "lifting a stone to shoot yourself in the foot".

Reuters reported that on the same day, the BMW Group announced its results for the first quarter of 2024. Like its German rivals Volkswagen and Mercedes-Benz, BMW relies heavily on revenues from its operations in China. China is BMW's second-largest market after Europe, accounting for nearly 32% of sales in the first quarter.

宝马集团董事长齐普策/IC Photo

After the results, Mr. Zipzer warned the EU not to impose additional tariffs on imported Chinese electric vehicles, or else "you may soon shoot yourself in the foot."

"We don't think our industry needs protection." Zipzer noted that operating globally can give major automakers an advantage in the industry, but "the imposition of import tariffs could easily jeopardize that advantage."

He told analysts that automakers, including BMW, "have a two-way dependence not only on the final product, but also on components and raw materials" and that "the EU can't make a car without parts from China." ”

The European Commission released the "Green Deal Industrial Plan" early last year to counter the adverse effects of the US Inflation Reduction Act on Europe.

Zipzer noted that this plan will ensure that the EU is leading the way in reducing carbon emissions and developing decarbonisation technologies, but that tariffs will undermine this.

"Without China's resources, Europe would not have been able to achieve its green industry goals." Zipzer said.

上月举行的北京车展上，宝马THE XM亮相/IC Photo

With the rapid rise of China's automotive industry, last year, the European Commission announced a "takedown" on Chinese electric vehicles, launching a countervailing investigation, and a final decision is expected this summer.

However, the "beneficiaries" of the EU's protectionist measures seem to have a muted response, and some companies are even worried about whether this approach will have a negative impact and damage healthy market competition in the automotive industry and the global supply chain.

Before Scholz's visit to China last month, Zipzer mentioned: "At present, the EU has launched a countervailing investigation on Chinese electric vehicles, and we still adhere to our position - importing Chinese electric vehicles will not cause substantial harm to the European auto industry, and it is not in the interests of the EU to impose tariffs on these imported goods." China is one of the most important strategic markets for the BMW Group, and the BMW Group makes the same statement both in China and in Europe. ”

Kang Linsong, chairman of the board of directors of Germany's Mercedes-Benz Group AG, called on the EU to lower tariffs on electric vehicles in China in an earlier interview. In his view, competing with Chinese automakers will help the European auto industry produce better cars, and that Europe would be "on the wrong track" if it chooses protectionism. He advocated an open market economy and let the results of competition speak for themselves. Luca de Mayo, CEO of French automaker Renault Group, said that Europe needs to protect its own market in the process of transformation, but it also needs to cooperate with Chinese car companies of the "leading generation", and "completely close the door to China, which is terrible".

The German Association of the Automotive Industry (VDA) also spoke out last month against the EU's imposition of additional tariffs on EVs imported from China, saying it could trigger a trade war and threaten German jobs, jeopardizing the EU's goals of promoting electric vehicles and moving towards digital transformation.

According to a report by the German Press Agency on May 7, German Minister of Digitalization and Transport Volker Wiesing also opposed the EU's punitive tariffs on Chinese electric vehicles.

"We don't want to lock down the market, we want to compete." He said the German government wants to ensure that German businesses continue to create added value in the country and remain competitive in global trade. "That's why we want international trade to take place on a level playing field, regulated competition, rather than a trade war through punitive tariffs."

This article is an exclusive manuscript of Observer.com and may not be reproduced without authorization.

View original image 122K

• 

•