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BMW’s chief financial officer, Walter Mertl, said that the EU’s investigation into subsidies given to Chinese EV manufacturers that are exported to Europe could end up doing more harm than good.
According to Reuters, BMW builds its iX3 electric SUV exclusively for global markets in Shenyang, China, and will export Minis built by its joint venture with Great Wall Motor from 2024. That leaves the automaker vulnerable to possible EU tariffs on imports from China, as well as backlash from China on its sales in the country.
Mertl argued that the investigation therefore would only protect companies that do not have significant manufacturing operations in China, ultimately hurting every other carmaker that does business in the region.
"The backlash, like a boomerang, can be bigger than what one imagined," he said.
Though 90% of BMW vehicles sold in China are produced locally, some materials are shipped from Europe to China, Mertl added.
During the week of October 5, the EU launched an anti-subsidies probe into Chinese EV manufacturers, setting in motion a 12-month investigation that could see provisional duties and tariffs imposed over the next nine months.
The probe, which was announced in September, will focus on newly produced battery-powered electric vehicles (BEVs) as well as alleged subsidies granted by China.
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