- BMW boss Oliver Zipse says the German auto industry does not need protection in the form of EU tariffs against Chinese components.
- The CEO of Mercedes agrees and calls for import tariffs for the Asian superpower to be lowered.
- The EU is expected to make a final decision on tariffs in November.
As the European Union considers whether it should impose import tariffs on Chinese electric vehicles to protect its local manufacturers, German companies BMW and Mercedes say they oppose the move, arguing it could backfire.
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To encourage the growth of its domestic automobile industry, China has offered generous subsidies to domestic companies that make electric vehicles and their batteries. Although the move was successful, the country’s automakers are now building more vehicles than they can sell domestically, leading to fears that they will undercut European automakers and sell vehicles at an unbeatable price.
Read: Mercedes boss asks EU to reduce, not increase, tariffs on Chinese electric vehicles
However, both BMW and Mercedes operate production facilities in China and argue that imposing import tariffs on cars and components made in China could slow Europe’s transition to electric vehicles.
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“We don’t believe our industry needs protection,” BMW CEO Oliver Zipse said this week, according to Reuters. “There is no Green Deal in Europe without resources from China.”
Mercedes boss Ola Kaellenius agreed with Zipse and reiterated his opposition to trade restrictions with China this week, Reuters reports. In fact, he has argued in the past that the EU should lower, not increase, tariffs against the Asian country.
However, not all European car manufacturers agree. In a recent letter to European voters, Renault boss Luca de Meo wrote that the continent should support its automotive sector and suggested that automakers pool their resources and work together to take on the Chinese auto industry.
The European Union’s investigation is due to conclude in November, but it could decide to impose provisional tariffs as early as July. Despite opposition from Germany, bloc leaders appear to support measures to protect Europe’s manufacturing sector from outside threats.
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