EU plans anti-dumping tariffs: BMW fears Chinese retaliation

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BMW is pleased with sales and order figures. “Things are going well for us,” CFO Walter Mertl said on Friday. Sales figures increased by more than 5 percent in the last quarter, as in the first nine months, compared to the same period last year. Incoming orders are high. Electric car orders are much higher, especially in Germany and Europe. Mertl said that BMW is growing faster than the market in China thanks to its luxury cars and “we are making good money.” BMW is also doing well in America.

Mertl said, “Energy prices and raw material prices are working for us right now.” BMW plans to present its quarterly results on November 3.

The automaker is worried about supply chains: “It’s still stagnating,” Mertl said. The availability of trains and trucks in Europe is an issue that is likely to continue next year. Things are going better at the ports in Mexico, where BMW produces the 3 and 2 Series, but it’s not normal yet. There are also increasing problems among suppliers: “Many of our suppliers are not doing very well.” There are bankruptcies. Even large suppliers will need to grapple with transformation. Additionally, energy, material and labor costs will be high.

BMW’s board of directors has been highly critical of the EU Commission’s consideration of imposing anti-dumping duties on state-backed Chinese electric cars. “I don’t think punitive tariffs are the appropriate measure,” Mertl said. “They reinforce each other.” China’s countermeasures could be serious: “This will affect everyone doing business in China.”

BMW sells 31 percent of its cars in China. 90 percent of these are built on site. So far, BMW has only exported the iX3 from China and the electric Mini to Europe from 2024. Mertl said that the EU sent a survey to the Chinese joint venture for this reason. In contrast, BMW exports luxury cars such as the 7 Series from Dingolfing in Bavaria and the X7 from the US to China.

BMW will also be able to produce the e-mini at its Oxford plant from 2026. However, there is a threat of a 10 percent import duty between the EU and Great Britain as of next January. This will make cars in Great Britain and the UK more expensive and strengthen cars from Asia and America.

The finance director hopes to achieve higher profits from central direct sales in Europe: from 2024 for Mini, until 2026 for all BMW cars. The customer can no longer go to dealers and negotiate a cheaper price on the third or fourth time. (SDA)

Source :Blick