BMW’s CEO, Oliver Zipse, cautioned on Wednesday against imposing EU import duties on electric vehicles (EVs) from Chinese automakers, citing potential risks to the bloc’s Green Deal industrial plan and German automakers that rely on imports from China.
The European Commission, responsible for trade policy in the EU, initiated an investigation in October into whether fully-electric cars manufactured in China were benefiting from distortive subsidies and warranted additional tariffs.
Zipse expressed concerns, stating, “You could very quickly shoot yourself in the foot.” He emphasized that BMW, like its German competitors Volkswagen and Mercedes-Benz, imports Chinese-made vehicles into Europe and that operating globally provides major automakers with an industrial advantage that could be endangered by import tariffs.
China is BMW’s second-largest market after Europe, accounting for nearly 32% of sales in the first quarter. Zipse emphasized that the automotive industry does not require protection, highlighting the interconnectedness of global supply chains and the risk of disrupting these networks with import duties.
The European Commission is expected to conclude its investigation by November, with the possibility of imposing provisional duties as early as July. EU CO2 emission standards, set to take effect next year, will increase the demand for EVs that rely on Chinese battery materials, further complicating the situation.
Zipse stressed that the EU’s industrial plan, aimed at positioning the bloc as a leader in cutting carbon emissions, relies on resources from China. “There is no Green Deal in Europe without resources from China,” he said.
