German e-cars from China
VW warns against illegally imported ID models
By Diana Dittmer
01/19/2023, 8:13 p.m
More and more e-cars from VW factories in China end up on the European market – without authorization. Wolfsburg defends itself against it. In a letter, VW now threatens its dealers with legal consequences. Buyers would have to be prepared for high costs.
Resourceful gray market dealers in China have apparently discovered a lucrative business area for themselves: Because there are not enough e-cars for interested buyers in Europe and the waiting times are long, European dealers are apparently being offered new German-made cars made in China. The “Handelsblatt” reports, citing a letter from a dealer.
The gray import not only shortens waiting times in Europe, but should also be worthwhile for dealers because the production of the vehicles in China is cheaper. According to the definition, in a gray market opportunities are exhausted to get original goods more cheaply away from official trade routes. According to the newspaper, the focus is on the ID model series from VW. The Wolfsburg-based company apparently now wants to put a stop to the trade that was discovered in the second half of 2022.
According to the “Handelsblatt”, the group expressly warns its dealers in the letter not to buy the imported e-cars in order to then sell them on. Imports of the ID series from China are said to be illegal. The vehicles should not be bought or sold by VW dealers “in the contractually authorized business with the Volkswagen brand, nor adapted to the local market conditions with your help”. Dealers who do not comply with these strict requirements would have to reckon with serious legal consequences.
The ID.3 and ID.4 models are among the most popular electric cars. The waiting times are between 10 and 13 months. A main reason for this is the still ongoing shortage of semiconductors. In addition, there are the after-effects of the corona pandemic and the consequences of the Ukraine war. The car manufacturers can’t keep up with the orders. The People’s Republic plays a key role for the Wolfsburg-based group. Because China is not only its largest sales market, VW also relocated almost 40 percent of its total production there in 2017.
China cars don’t meet European standards
Apparently, the VW dealers in Germany were also asked to convert the cars from China. Software and hardware configurations of the same models differ for individual countries. In the case of the electric cars from the ID series, there are allegedly three differences that do not meet European standards: the automatic emergency call assistant (eCall), established Chinese internet services such as “WeChat” and the charging plug.
At first glance, the cars from China and Europe can hardly be distinguished. To ensure that the cars are not accidentally approved for European roads, the European registration authorities are said to have already been contacted and asked to take a closer look.
The right is on the side of Wolfsburg. According to European law, new cars from China may not be imported and registered without approval and testing. “That’s illegal,” agrees the car expert Ferdinand Dudenhöffer from the Car Institute. “The trademark rights are owned by VW. The group is automatically held liable here.” Without adaptation to the respective standards of a market and a special permit from the TÜV, which also included road tests, the cars should not be allowed on European roads. Experts also speak of homologated vehicles.
How many Chinese ID models have arrived in Europe so far is unclear. The dealer’s letter only says: Recently, “increasing numbers of ID models from China have been imported into the European Union in violation of the trademark usage permit”. Gray market vehicles are said to have increasingly appeared in Italy. VW suspects that the cars will reach Europe via the Middle East. It is unclear whether other manufacturers are also affected. It cannot be ruled out that Tesla models from China will appear on the European market, says Dudenhöffer. “Because most of them are made in China.”
According to VW, it is about legal certainty. Dealers, but also buyers should be made aware. If end customers agree to such purchases, they could lose a lot of money. Regulatory authorities could require the Chinese cars to be decommissioned. In December, Volkswagen itself announced plans to export electric cars from China to Europe. As the finance agency Boomberg reported, it is about the import of the electric SUV coupé from the Spanish VW brand Cupra.