In October 2023, the Italian government launched an investigation against DR Automobiles for misleading customers about the origin of its cars. Eight months later, the Italian government decided to fine the company with 6 million euros, although the company claims that the accusation is unfounded.
DR Automobiles have established a simple system of processing Chinese cars with refined Italian design and partly buying selected European technology. The result is affordable SUV models, and the slogan “Una storia Italiana” itself is part of finely packaged marketing combined with patriotism, trying to hide the origin of the vehicle. The regulator stated that the vehicles, which are sold under the brands DR and EVO, are promoted as Italian products, but are mostly of Chinese origin. Only a small part of assembly and finishing works is done in Italy. “This practice coincides with the period in which the company recorded a significant increase in sales of DR and EVO vehicles on the Italian market,” the statement said.
This decision comes at a time of increased tensions between the EU and China, all because of the privileged position of electric vehicles produced in China due to subsidies. The EU launched an investigation that showed that the Chinese government subsidized cars exported to Europe in various ways, and in response the EU is considering the introduction of additional tariffs (38%).
The EU is not the only one that has introduced additional tariffs on Chinese vehicles. Turkey did the same with additional tariffs of 40% on Chinese cars, and the United States did it before them. The United States raised the tariff rate on imported cars from China from 25% to 100%. Of course, such decisions were condemned by the Chinese authorities, who announced countermeasures to protect their interests.
Source: Reuters
