BMW Chief Favors China Pricing Deal Over New EU Tariffs

BMW CEO Milan Nedeljkovic wants Europe to address low-priced Chinese car imports through voluntary pricing agreements, not new tariffs. In an interview with German newspaper FAZ published Tuesday, he said some cars were being offered at prices that made little business sense.

Nedeljkovic called for political talks with Beijing to agree on market-based pricing, followed by practical steps. He argued that extra duties would be a heavier intervention and risk feeding protectionism.

The debate comes as the European Union weighs how to respond to Chinese competition. Brussels has asked Beijing to consider voluntary limits on hybrid-car exports, according to a September 17 Reuters report on a Financial Times story. China has since rejected the idea.

The EU already applies additional duties to battery-electric cars made in China. Introduced in October 2024 for five years, the rates range from 7.8% for Tesla’s Shanghai-made cars to 35.3% for some other exporters, on top of the bloc’s standard import duty.

BMW has criticized those EV duties and warned they could trigger a trade conflict. The company also makes its all-electric Mini in China for export, giving it a direct stake in rules that affect Chinese-built cars entering Europe.

Nedeljkovic took over as BMW’s board chairman on May 14, succeeding Oliver Zipse. His comments put the automaker’s preference for negotiation in focus as EU-China discussions broaden from electric cars to hybrids.

The next test is whether Beijing and Brussels can agree on pricing or export limits before the dispute widens. China’s opposition to voluntary restrictions points to difficult talks, while BMW’s position reflects the tension between shielding European producers and preserving open trade.