The EU’s highest new import tariff (38.1%) threatens the MINI brand.
Last week the European Commission took a draconian decision. To combat unfair competition, import tariffs are being sharply increased for cars from China.
The import tariff depends on how much the EU hates you. If you, as a brand, have cooperated peacefully with the EU, the rate varies from 17.4% to 21%. Those who have not granted cooperation face the highest import tariff of 38.1%. Remarkably, this highest rate awaits the BMW Group, with the MINI brand, Reuters reports.
MINI import tariff
European brands produce in China for only one reason: icicles. For years, Chinese car factories have been meeting high standards and the quality is so good that Chinese-produced cars are also sold here in Europe. It is a lot cheaper to produce in the Asian country and then put the four-wheelers on a boat to Europe. Some owners don’t even know their car is made in China.
The European Commission would of course prefer to see cars for the European market also built on European soil. By applying strict import tariffs, the advantage disappears. Various Chinese brands are affected by the measure, but also European car manufacturers.
The fully electric MINI (and the new Aceman) rolls off the production line in Zhangjiagang. Yeah, that doesn’t sound very European, does it? Zhangjiagang is located in Jiangsu Province in eastern China.
The BMW Group produces the electric MINI in a joint venture with Great Wall Motor. However, the joint venture was late in completing a survey from the European Commission. As a result, they will probably soon have to deal with an import tariff of 38.1%.
The iX3, also produced in China, is at the top of the list. This electric car is produced by BMW Brilliance Automotive, which is yet another joint venture. This joint venture was on time with the memo and receives the ‘more favorable’ import tariff of 17.4%-21%.
If there are no negotiations from the Chinese government and the import tariffs actually continue, the new MINI Electric will be an expensive joke. If you were to calculate the rate of 38.1% one-on-one for this model, the starting price would not be €35,990 but €49,702. Ouch, the last word has not yet been said on this.
Comments
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ghengiskhan say
I can’t feel sorry for it. Those who want the best, etc.
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Harry say
As we speak, the lobbyists are working hard to text Ursula to fix this democratically.
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crashingduke say
There is still some space in a car factory in Born.
