financetom
Business
financetom
/
Business
/
BMW electric Mini threatened with highest EV tariff from EU, source says
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
BMW electric Mini threatened with highest EV tariff from EU, source says
Jun 14, 2024 6:16 AM

BERLIN (Reuters) - BMW's all-electric Mini made in China is set to be hit by the highest EV tariff of 38.1% under the EU's provisional plans, a source familiar with the matter said on Friday, a potential terminal blow for the mid-range car's sales prospects.

Mass production of the roughly 35,000-euro ($37,345) vehicle, produced by a BMW and China's Great Wall Motor Co Ltd joint venture, began late last year - shortly after the EU launched its probe.

With production still in early days, the JV was unable to fulfil the European Commission's survey to the level of detail required to be classed as a company cooperating with the investigation, the source said, declining to be named because discussions are private.

Companies seen as cooperating with the EU were subject to lower tariffs of 17.4%-21%, according to a European Commission document seen by Reuters. That includes BMW Brilliance Automotive, another BMW joint venture which has produced the electric iX3 for export to Europe from China since 2021.

BMW declined to comment. BMW CEO Oliver Zipse said earlier this week the tariffs were the "wrong way to go", echoing concerns from other German carmakers fearful of a trade war which could end in counter-tariffs on cars exported from Germany to China.

The European Commission said that joint ventures producing cars in China would be subject to duties, without specifying whether more recently formed ventures might benefit from the lower 21% rate for companies that cooperated with the investigation.

A 38.1% price hike on the Mini, which was to be exported from China to Europe, could dent sales at a time when the carmaker is counting on every projected all-electric sale to help meet tightening carbon emissions targets.

The deadline for imposing provisional measures is July 4, after which the investigation will continue to late October. That leaves time for Beijing and Brussels to make a deal to soften the blow. Companies can also submit comments and request hearings after the provisional duties are applied.

($1 = 0.9372 euros)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Factbox-Top bank executives' take on US presidential elections
Factbox-Top bank executives' take on US presidential elections
Jul 12, 2024
(Reuters) - The U.S. election and geopolitical uncertainty are among the factors clients are focused on as they weigh their business decisions for the next few quarters, banking executives said on Friday. U.S. President Joe Biden is facing calls to abandon his re-election bid after a feeble presidential debate performance against his rival, Republican Donald Trump, late last month. Here...
Oracle Unusual Options Activity
Oracle Unusual Options Activity
Jul 12, 2024
Deep-pocketed investors have adopted a bearish approach towards Oracle , and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in ORCL usually suggests something big is about to happen. We gleaned this information from our observations today...
IBAT launches new lithium extraction technology in Utah
IBAT launches new lithium extraction technology in Utah
Jul 12, 2024
(This July 11 story has been officially corrected to fix the companies' production run rate in a bullet and in paragraphs 1-3 and corrects royalty information in paragraph 16) By Ernest Scheyder HOUSTON (Reuters) - International Battery Metals said this week it has launched its version of a novel type of lithium filtration technology, a move that could help usher...
Ford Motor Shares Are Trading Higher: Here's What You Need To Know
Ford Motor Shares Are Trading Higher: Here's What You Need To Know
Jul 12, 2024
Shares of Ford Motor Company ( F ) are moving higher on Friday, potentially driven by several positive developments announced during the week. What To Know: On Thursday, the Biden-Harris administration announced nearly $2 billion in funding to support the conversion of 11 shuttered or at-risk auto manufacturing facilities across eight states into electric vehicle (EV) manufacturing sites. This initiative...
Copyright 2023-2026 - www.financetom.com All Rights Reserved