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Chinese-made electric Mini threatened with highest EV tariff from EU

BERLIN — The new all-electric Mini Cooper made in China is set to be hit by the highest EV tariff of 38.1% under the EU's provisional plans, a Reuters source familiar with the matter said on Friday, a potential terminal blow for the car's sales prospects. Mass production of the roughly 35,000-euro ($37,345) vehicle, produced by a joint venture of BMW and China's Great Wall Motor Co Ltd, began late last year - shortly after the EU launched its probe. With production still in early days, the joint venture was unable to fulfil the European Commission's survey to the level of detail required to be classed as a company cooperating with the investigation, the source said, declining to be named because discussions are private. Companies seen as cooperating with the EU were subject to lower tariffs of 17.4%-21%, according to a European Commission document seen by Reuters. That includes BMW Brilliance Automotive, another BMW joint venture that has produced the electric iX3 for export to Europe from China since 2021. BMW declined to comment. BMW CEO Oliver Zipse said earlier this week the tariffs were the "wrong way to go", echoing concerns from other German carmakers fearful of a trade war which could end in counter-tariffs on cars exported from Germany to China. The European Commission said that joint ventures producing cars in China would be subject to duties, without specifying whether more recently formed ventures might benefit from the lower 21% rate for companies that cooperated with the investigation. A 38.1% price hike on the Mini, which was to be exported from China to Europe, could dent sales at a time when the carmaker is counting on every projected all-electric sale to help meet tightening carbon emissions targets. The deadline for imposing provisional measures is July 4, after which the investigation will continue to late October. That leaves time for Beijing and Brussels to make a deal to soften the blow. Companies can also submit comments and request hearings after the provisional duties are applied.   Green Government/Legal Rumormill BMW MINI China

EPA finally approves sales of 2017 BMW diesels

The Environmental Protection Agency has approved the sale of 2017 BMW diesel vehicles in the US, reports Automotive News. According to Chris Grundler, head of the EPA's Office of Air Quality and Transportation, the vehicles were delayed due to rigorous testing. Following the Volkswagen diesel scandal, the EPA stated that it would review all diesels headed to the US. Last month, the EPA delayed sales of BMW's 2017-model-year diesels due to testing logistics, claimed BMW. Now that the vehicles have been approved, production of the models should begin shortly. While BMW's diesels have been cleared, the report indicates that Mercedes-Benz's 2017 diesel models are still undergoing further testing. "Discussions continue," Grundler stated, but he declined to point to any specifics on why the EPA has not approved those diesel models. Amid the numerous lawsuits against VW, Mercedes has also been involved in suits that claim its diesels use defeat devices, although no major proof has surfaced. Earlier this year, Mercedes confirmed that the US Justice Department, EPA, and the California Air Resources Board (CARB), were investigating its diesel models. The 2016 diesel models from VW haven't been approved for sale yet, and the automaker has not asked for permission from the EPA to sell 2017 diesel models, claims Grundler. At this point in the year, it's not likely VW will sell any 2016 diesels. Last year, BMW's diesels accounted for about four percent of the company's total US sales, so the delay is not likely to have a drastic affect on its bottom line. Related Video: News Source: Automotive News-sub.req.Image Credit: AOL Government/Legal Green BMW Mercedes-Benz Volkswagen Diesel Vehicles vw diesel scandal

As US exports top 2 million, is America becoming the world's source of cheap cars?

North American auto production is booming with 2014 figures just shy of the of the 17.3-million vehicle record set in 2000. With more models being built on the continent, even more are being shipped overseas. Factories in the US exported 2.1 million cars last year – the highest number ever. About half of those went to Canada and Mexico, but more than ever have been heading to places like the Middle East and China. The upswing comes in part from from after-effects from the Great Recession, according to The Wall Street Journal. With a weak dollar and lower production costs after the financial crisis, building vehicles in the US was relatively cheaper and more competitive in the world. At the same time buyers around the world are going crazy for crossovers. According to the WSJ, BMW and Mercedes-Benz are already exporting the majority of their US production of these models overseas. Both automakers have also announced investments to expand production further here to send more vehicles abroad. Even Honda has been shipping more models out of the country than it imported here. There is a concern this international strength could start slowing because the dollar is strengthening against other currencies, though it's too early to know what the actual effect of this could be, according to the WSJ. "Of course, we closely watch currency exchange, but we don't make changes in production or allocation based on temporary fluctuations in the exchange rate," Ford North American boss Joe Hinrichs told the newspaper. Related Video: News Source: The Wall Street Journal - sub. req.Image Credit: BMW Plants/Manufacturing BMW Ford Honda Mercedes-Benz exports us auto production