A car dealer purchased 22 VW ID.6s produced in China to market them in Germany. Despite valid registrations, the manufacturer managed to prevent the model from being sold in this country, and the cars now risk being destroyed. Because for VW, it’s much more than 22 cars.
The Chinese automobile market is today one of the most advanced in the electric sector, supported by favorable state policies and rapid public adoption.
In this context, Chinese manufacturers have been able to establish themselves as significant players. This led to a general drop in prices, including for foreign brands like Volkswagen which had to implement an aggressive pricing policy to resist. This situation raises an interesting question: would it be beneficial to import electric cars directly from China? Especially since prices are almost twice as low in China. We can also take advantage of this to import vehicles that are not sold in Europe.
Volkswagen vs. the gray market
Take the example of Gregory Brudny. This Russian sells used cars and yachts and he wanted to make a splash by importing the Volkswagen ID.6, an electric SUV designed for the Chinese, and selling it in Germany. Volkswagen did not like this and demanded that the 22 cars that Gregory Brudny had imported be destroyed. For what ? Because these cars were made for the Chinese market, with specifications unsuitable for Europe according to Volksagen.
Here’s the rub: Gregory Brudny claims to have done everything by the book, with official documents showing that the cars were adapted to European standards. It even speaks of approval by German transport authorities. But now, Volkswagen insists that these cars were not made to be sold outside China.
Behind all this, there are a lot of technical details. For example, these Chinese cars do not have certain equipment mandatory in Europe, such as emergency call. Then there are differences in software and infotainment systems. All these differences make it complicated to sell them as is in Europe.
But that’s not all. There are also big issues at stake for Volkswagen. They don’t want models designed specifically for one market to end up elsewhere. It’s about quality control, respecting trade agreements and protecting the brand. Basically, they don’t want unsuitable or unauthorized cars to disrupt the European market.
22 cars that could be destroyed and set a precedent
For the moment, the 22 cars have been seized by the courts. Volkswagen wants them destroyed. Gregory Brudny wishes he could sell them. Volkswagen has obtained a temporary injunction against the sale of these electric cars, because the group believes that its trademark rights have been violated. The VW ID.6 is actually only intended for the Chinese market according to the German brand.
Gregory Brudny thinks the opposite. For him, the ID.6 is “ the only electric car with which you can win on the market “. 500 kilometers of autonomy, seven seats, more space than in the thermal Touareg: “ The idea was to give the ID.6 to Volkswagen dealers in Germany for resale. Obviously we upset Volkswagen with this “, he explains to the media Welt. The automobile group does not want competition, because he knows that then his other models will lose “.
So, importing electric cars from China may seem like a good deal on paper, but in reality, it’s certainly very complex. Between regulations, technical standards and the strategies of big brands, you really have to be careful not to find yourself stuck in a situation like that of Gregory Brudny.
This is not good news for “gray market sellers” like Gregory Brudny: “ Officially, we buy products where they are cheapest and officially sell them at a profit. This is a completely normal activity “, he said. However, if products become more and more different, cars become more and more like computers on wheels and can no longer be customized by any workshop, the power of manufacturers over their own products and their sale on regional markets is likely to increase. This is why the Hamburg judges can set a precedent.