BMW’s chief financial officer, Walter Mertl, said that the EU’s investigation into subsidies given to Chinese EV manufacturers that are exported to Europe could end up doing more harm than good.
According to Reuters, Mertl argued that the investigation would only protect companies that have not had a significant number of sales in China, ultimately hurting every other carmaker that does business in the region.
“The backlash, like a boomerang, can be bigger than what one imagined,” he said.
Though 90% of BMW vehicles sold in China are produced locally, some materials are shipped from Europe to China, Mertl added.
Read more: EU Formally Opens Subsidies Probe into EVs Made in China
BMW currently exports its iX3 models from China to Europe and will begin exporting BMW Minis from the region starting in 2024, leaving the company vulnerable to potential tariffs imposed by the EU as well as any backlash from China regarding the probe.
During the week of October 5, the EU launched an anti-subsidies probe into Chinese EV manufacturers, setting in motion a 12-month investigation that could see provisional duties and tariffs imposed over the next nine months.
The probe, which was announced in September, will focus on newly produced battery-powered electric vehicles (BEVs) as well as alleged subsidies granted by China.
