Dusseldorf New electric cars are a scarce commodity in Europe and especially in Germany. The delivery times – for example at Volkswagen – are sometimes more than a year. Chinese gray market dealers want to capitalize on this: They offer Chinese-made cars from VW’s electric ID model series in Europe.
But Volkswagen is fighting back. For the Wolfsburg car manufacturer, imports from the People’s Republic are illegal. The VW Group is therefore warning its German dealers against buying up the ID imports and selling the cars: “You may not buy or sell these vehicles in contractually authorized shops with the Volkswagen brand, or adapt them to local market conditions with your help “, it says in a letter to the dealers, which is available to the Handelsblatt.
VW dealers who do not comply with these strict requirements from Wolfsburg would have to face serious legal consequences. Any form of infringement could represent “conduct in breach of contract”, Volkswagen will “not tolerate such behavior”.
Volkswagen produces cheaper in China
Volkswagen’s electric ID models have been on sale in Germany since late summer 2020. In China, VW has only been producing these electric cars since spring 2021. Production costs in the People’s Republic are lower than in Germany. The gray market dealers want to take advantage of this difference by selling ID models produced in China in Europe.
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In the second half of last year, Volkswagen first became aware of attempts to sell Chinese ID models in Europe, particularly Italy. At VW, it is assumed that the cars reached Europe via the Middle East.
In Wolfsburg group circles it is said that the gray market dealers also wanted to sell the larger electric SUV ID.6, which is currently only sold on the Chinese market, to Europe. Otherwise, the ID model range in China largely corresponds to the European offer.
In the letter to the German VW dealers, Volkswagen states that the reason why the ID models produced in China cannot be sold in Europe is that the vehicles are “not eligible for approval in Europe due to their hardware and software configuration”.
VW models are different
The automatic emergency call assistant (“eCall”) built into the Chinese models does not meet European standards. In the cars from the People’s Republic, Chinese Internet services such as “WeChat” are set up instead of Western providers. The charging plugs also do not comply with European standards.
According to company circles, the Wolfsburg car manufacturer has also contacted European registration authorities. With this, VW wants to prevent the Chinese ID models from being approved for road traffic in Europe at all.
As can be seen from the letter to the dealers, the Chinese gray market dealers asked the German and European Volkswagen dealers whether they would “convert the cars to the requirements of the local markets”. So the dealers wanted to avoid the approval problems.
>> Read the interview here with VW China boss Brandstätter, how the Chinese car market is changing
In Wolfsburg, there is concern that the Chinese ID models could now and then be approved for road traffic in Europe – because the registration authorities may not look closely. At first glance, European and Chinese electric cars hardly differ.
Volkswagen itself cannot say exactly how many Chinese ID models have arrived in Europe so far. The dealer’s letter states that “recently, an increasing number of ID models from China have been imported into the European Union in violation of the trademark usage permit”.
Volkswagen wants to protect customers
A VW spokesman confirmed attempts to sell ID models made in the People’s Republic in Europe. The notices to German VW dealers are primarily to be understood as a warning not to engage in what Volkswagen believes is illegal business with imported electric cars.
The VW Group wants to raise awareness and create legal certainty. End customers who embarked on such ID purchases could lose a lot of money. The registration authorities are likely to require the decommissioning of Chinese cars. “Volkswagen’s aim is therefore to protect dealers and customers from buying vehicles that cannot be registered,” emphasized the VW spokesman.
More: VW deliveries in China fell to a nine-year low