MG’s Cold Anger at European Sanctions

MG did not take long to respond to the announcement by the European Commission of a 38.1% surcharge on its models.

The European Commission, after more than 9 months of investigation, concluded that MG and its parent company SAIC did not meet European requirements regarding public subsidies. Given that SAIC is a national company, it is not surprising that it enjoys generous benefits. However, it seems that this has gone well beyond what is acceptable, as MG received the heaviest penalty with an additional tax of up to 38.1%, while the exemplary BYD faces “only” 17%. What a blow!

Tesla vehicles imported from China are also expected to face an additional tax of around 20%. But while Tesla decided to make the best of a bad situation by encouraging its customers to buy a car as quickly as possible before these customs fees come into effect in early July, MG is staring wide-eyed.

Here is MG’s statement in full:

MG expresses its opposition to this protectionist trade measure and believes it will constitute an excessive barrier to entry. MG shares its deep concern about the inevitable impact that tariffs will have on its estimated customers. Such a high taxation will also significantly negatively impact the supply chain, innovation, and market cooperation.

The continued growth of sales and the outperformance of MG within the EU are driven by a wide range of world-class models, innovative technological features, safety, reliability, and a high level of service provided by MG’s European dealer partners. Over the last decade alone, SAIC, the owner of MG, has invested nearly 20 billion euros in electric research and development, with over 26,000 patents filed, to develop a dynamic and reliable supply chain.

Having become one of the leaders in electric mobility in the EU, MG’s development plays a central role in making electric driving accessible to all. By promoting the transition to sustainable and environmentally friendly mobility, MG is a driving force in accelerating the necessary transformations needed to combat global climate change.

Regarding the potential consequences of increased tariffs, MG calls on the European Commission to carefully reconsider its decision and to engage in constructive dialogue with its partners in the global automotive industry, including China, to jointly find solutions that promote fair competition, with the aim of advancing essential sustainable development together.

MG remains committed to providing accessible electric mobility solutions and thereby driving the transition to sustainable transportation. Finally, MG wishes to express its deep gratitude to all its customers and partners who have offered their support and trust.

In extremely polite terms, the threats of retaliation are real. The ball is now in Brussels’ court, but the saga is just beginning and it promises to be exciting!