BMW chief Oliver Zipse called for a swift implementation of the customs agreement that Brussels and Washington negotiated last summer. “Let’s finally apply the Turnberry Deal that was agreed in August in Scotland between the EU and the US on the European side” Zipse told the “Süddeutsche Zeitung” (Thursday edition).
According to the deal, the United States would cap tariffs on EU goods at 15 %, while the EU would reduce its tariffs on US goods to zero. “We are paying both tariffs right now: 15 % ‘new’ duties on imports into the United States and 10 % ‘old’ duties on vehicles shipped from our South Carolina plant to Europe. This is not what we envisioned for this deal” he added. “Many people are still struggling with Brussels’ negotiation strategy. We urgently need more stability and speed in Brussels”.
Zipse was also hard‑hearted in his critique of the German economy and companies. “I am annoyed by the lack of self‑confidence that seems to prevail in Germany at the moment” he said. “Europe has so many companies that are world leaders in their sectors. I explicitly reject the notion that we will be overrun by others. Complaining does nothing. I would like to see more courage, more will, and fewer complaints”.
Concerning the war in Iran, Zipse said the impact on BMW is currently negligible. “The team around our procurement executives immediately examined, at the start of the war in Iran, whether we would be directly affected, for example whether any deliveries might be disrupted” he reported. “At the moment our supply is not impaired”.
Finally, looking at the sharply rising gasoline price, Zipse does not foresee an immediate shift in demand toward electric cars. “Beware of supposedly straightforward cause-effect relationships” he cautioned. “Demand for a particular propulsion system depends on many factors. And at present we do not know whether the war could also lead to higher electricity prices”.
