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The Markets
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Transport

BMW's Chinese Minis get lower EU tariff along with Tesla

BMW AG (ETR:BMW)'s Chinese-made electric Mini will be granted a lower tariff in the EU than other vehicles imported from the country.

Chinese partner Spotlight Automotive was classed as a "cooperating company," BMW said on Tuesday, meaning tariffs on its electric Minis will be priced at 21.3%, rather than the highest level of 37.6%.

BMW added it was "logical" that Spotlight faced lower tariffs in a statement, with these set to be introduced by the bloc after domestic producers have struggled to compete with heavily subsidised electric vehicles being imported from China.

Tesla Inc (NASDAQ:TSLA) also saw tariffs on its Chinese-made cars revised by the EU, from 20.8% down to 9%, after requesting the proposed rate be reassessed.

For BMW, the news marks a positive after the carmaker has faced a string of recalls in recent weeks.

Some 720,796 cars in the US were recalled on Tuesday over fears of vehicles' short-circuiting.

This included the X1 and X5 crossovers, alongside some 5-series sedans.

America’s National Highway Traffic Safety Administration said the latest issue related to an “improperly sealed electrical connector” on cars’ water pumps.

Water could get into the connector as a result, causing it to short circuit, the regulator added.

Cars will need to be physically inspected by dealers and faulty parts replaced on those affected, while protective shields will also be installed.

This comes after BMW was forced to recall over 100,000 cars just weeks ago in the US due to fears of starter motors overheating.

Millions more have faced callbacks across the UK and China in recent days over issues relating to airbags built by Japan’s Takata Corporation.

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