A Potential Threat to the Green Deal
Top executives at BMW and Volkswagen have expressed concerns about the European Commission's investigation into potential import duties on electric vehicles from China. They argue that such tariffs could harm the EU's Green Deal plan and damage European automakers that import cars made in China.
BMW CEO Oliver Zipse warned that imposing duties could backfire, as new EU CO2 emission standards will require more EVs, which are reliant on Chinese battery materials. He emphasized that "there will be no single car in the EU without components from China."
Volkswagen CEO Thomas Schaefer echoed these concerns, stating that potential duties carry the risk of retaliation from China. He believes that operating on a global basis gives major automakers an industrial advantage, which could be jeopardized by import tariffs.
Both CEOs emphasized that the European automotive industry relies heavily on revenues from its Chinese business. China is BMW's second-largest market after Europe, and Volkswagen also depends heavily on the Chinese market.
The European Commission is expected to conclude its investigation by November, with the possibility of imposing provisional duties in July. However, industry leaders urge the EU to reconsider, arguing that import duties would undermine the Green Deal and harm European automakers.