BMW CEO sees risk of cheap Chinese cars in Europe but opposes tariffs

BERLIN, September 22 (Reuters) - BMW's CEO Milan Nedeljkovic has advocated for voluntary pricing agreements instead of tariffs to tackle the issue of low-cost Chinese cars entering Europe, according to a recent interview in the FAZ newspaper. The BMW CEO highlighted instances where Chinese cars are being sold at prices that seem implausible from a business standpoint, expressing concern that this could potentially lead to protectionist measures in Europe.

The European Union is currently examining various steps to counter what Commission President Ursula von der Leyen describes as an "unsustainable" trade deficit with China. Some European car industry leaders and politicians have advocated for rules mandating local content and wider tariffs encompassing Chinese plug-in hybrids, fearing a threat to their market share.

Nedeljkovic urged for diplomatic discussions with China to establish a mutual understanding of market-based pricing, followed by practical actions. He emphasized that more tariffs would mean a more significant intervention, which is why he advocates for voluntary agreements based on fair conditions. He reiterated that nobody desires an escalation.

BMW has frequently criticized the existing EU taxes on Chinese electric vehicle imports and warned that such policies risk precipitating a trade conflict. BMW manufactures its electric Mini in China for export to Europe.