BMW Production Chief Urges Pricing Pacts Over Tariffs on Chinese EVs

A senior BMW executive has called for voluntary pricing agreements with China as an alternative to imposing tariffs on low-cost Chinese electric vehicle imports, arguing for dialogue over protectionist measures.

In an interview with German newspaper FAZ, BMW's production chief, Milan Nedeljkovic, expressed concern over the pricing of some Chinese vehicles entering the European market. "Some Chinese cars are being offered here at prices that are not comprehensible from a business perspective," Nedeljkovic stated, warning that this could fuel protectionist sentiment across Europe.

A Case for Voluntary Agreements

Nedeljkovic proposed a diplomatic approach, urging political dialogue to establish a mutual understanding of market-based pricing with China before resorting to punitive measures. He positioned tariffs as a less desirable outcome.

"Additional tariffs would constitute an even greater intervention, which is why I support voluntary agreements based on fair conditions," he told FAZ, adding that, "Nobody is interested in an escalation."

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EU Considers Tougher Stance

These comments come as the European Union scrutinizes its trade relationship with China. European Commission President Ursula von der Leyen has previously described the bloc's trade deficit with China as "unsustainable," prompting a review of potential countermeasures. Other European auto executives and political figures have been advocating for stricter measures, including tariffs and local content rules, to protect the domestic market share from Chinese imports, including plug-in hybrids.

BMW's position contrasts with some industry peers. The German automaker has previously warned that EU duties on Chinese EVs could trigger a damaging trade conflict. The company has a significant manufacturing footprint in China, where it produces its all-electric Mini model for export to global markets, giving it a vested interest in maintaining open trade relations.