BMW slams 'protectionist' Made in Europe laws as 'doomed to fail'

BMW Group has strongly criticised the European Union’s ‘Made in Europe’ proposal requiring electric cars to be made within the EU to qualify for a range of benefits. ‘Made in Europe’ is a core element of the Industrial Accelerator Act, which aims to halt the outflow of jobs from Europe. However BMW Group CEO Oliver Zipse slammed the act as “protectionist” that is doomed to fail in its stated aim of creating jobs. In a statement, the group added: "The expectation that this [Act] will create new industrial jobs is unrealistic.” The Act has the potential to inflict huge damage on UK car production if existing and future EVs are not included. The UK’s automotive industry association the SMMT has raised alarm bells over the act, which CEO Mike Hawes described as “very poorly drafted”. “The strict EU assembly rules and EU27 eligibility criteria currently proposed would effectively put UK manufacturers at a systemic competitive disadvantage,” Hawes said in a statement. The act as proposed says that only electric vehicles built in the EU are eligible to take advantage of special benefits, including inclusion on fleet purchase lists by government bodies, receiving purchase incentives, gaining CO2 credits (if under 4.2 metres long) and inclusion for incentives to boost electric take-up on corporate fleets. Exclusion from corporate fleets could shut out the UK car industry from 50-60% of the EU new car market, the SMMT reckons. Last year 57 percent of the UK’s car production was exported to the EU, according to SMMT figures. BMW has not specifically commented on the impact on Mini's Oxford plant, which currently only builds combustion engine Minis after BMW postponed a plan to shift Chinese production of the Mini Cooper EV to the UK. Zipse criticised the plan to give extra credits to small EU-built EVs, saying that creating two classes of car “reduces the competitiveness of the whole industry”. Nissan – which in Sunderland builds the Leaf and will soon begin production of the Juke EV – said it has seen evidence that the UK would be seen as ‘content equivalent to Union origin’ to allow it to be included in EU corporate fleet incentives as well as purchasing incentives, although that hasn’t been confirmed by the SMMT. Mercedes-Benz boss and president of European automaker association ACEA Ola Kallenius has described the draft proposal as “highly complex” while broadly welcoming its aims.

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BMW slams 'protectionist' Made in Europe laws as 'doomed to fail'

New EU act is intended to help European car makers in fight against cheaper Chinese imports

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BMW slams 'protectionist' Made in Europe laws as 'doomed to fail'

New EU act is intended to help European car makers in fight against cheaper Chinese imports

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