By Li Panpan
(JW Insights) Oct 8 -- EU's probe into subsidies for China-made electric vehicles exported to Europe could do more harm than good, said BMW's CFO Walter Mertl, as the probe is likely to lead to the EU imposing high tariffs on Chinese vehicle imports, according to a report by US-based Automotive News filed from Berlin on October 6.
Mertl said the EU investigation would impact every automaker doing business in China while protecting companies that do not have significant Chinese sales.
China is the biggest market for Germany's three top automakers -- BMW, Mercedes-Benz, and Volkswagen Group, said the Automotive News report.
BMW builds the iX3 exclusively for global markets in Shenyang, China, and will export Minis built by its joint venture with Great Wall Motor from next year, leaving it vulnerable to possible EU tariffs on imports from China as well as any backlash from China on its sales in the country.
While 90 percent of BMW cars sold in China are produced locally, some materials are shipped from Europe to China, Mertl said.
China has condemned the EU investigation, which formally began on October 4.
China Association of Automobile Manufacturers (CAAM) said that "the move will seriously disrupt the global automotive industry and supply chain, and we regret and firmly oppose this. China's electric vehicle market is very competitive, and it's clear that it is not supported and protected by subsidies."
