BMW CEO Backs Voluntary Deals Over China Tariffs

BMW CEO Milan Nedeljkovic said in a September 22, 2026 Frankfurter Allgemeine Zeitung interview that additional tariffs would constitute an even greater intervention, which is why he supports voluntary agreements based on fair conditions. He said Chinese new-car sales could fall below 20 million this year from 24 million last year, with output near 30 million leaving nearly 10 million for export. BMW's China sales fell for a third straight year and dropped 30 percent in the second quarter; a June 2026 profit warning cut its automotive operating-margin forecast to 1-3 percent from 4-6 percent. Only about 5 percent of BMW's China sales are fully electric, versus 46 percent of the broader market. Nedeljkovic said nobody is interested in an escalation and that BMW favors free trade but finds unexplained price distortions dangerous. Ursula von der Leyen has called the EU trade deficit with China unsustainable, while some European automakers and politicians favor local-content rules and tariffs on Chinese plug-in hybrids. BMW produces its all-electric Mini in China for export, plans thousands of German job cuts via voluntary severance with a one-time hit in the second half of 2026, and will price the iX3 in China at roughly half the European level, a gap of up to 30,000 euros.