Considering the lower prices of Chinese EVs compared to their German counterparts, an enterprising dealer saw imports as the solution, until VW intervened
5 hours ago
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A German car dealer is in hot water after embroiling himself in a major legal battle over his decision to import 22 Volkswagen ID.6s from China. Who could be upset with the dealer? The very company that built the vehicles, that’s who.
The dealer in question is Gregory Brudny, who saw the ID.6 and thought his customers would love it. He claims that he went through legal channels to purchase the vehicles, buying them from China’s VW-FAW.
Read: VW ID.6 Is A Three-Row Electric SUV With 365 Miles Of Range That’s Not For U.S.
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Why would he do such a thing? Well, while the average cost of new electric vehicles in Germany continues to climb, intense competition in China has led to substantial discounts. For instance, VW sold the ID.3 for as low as €16,000 or US$17,300, compared to its starting price in Germany of €40,000 or US$43,300. Similarly, the ID.7 Vizzion starts at ¥237,700 in China, equivalent to $33,400 or €30,800, while it costs nearly twice as much (+88%) in Germany at €56,995 or US$61,600.
The ID.6 is exclusively available in China as part of the rapidly expanding ID sub-range from the German brand. Essentially, it’s an extended-wheelbase version of the ID.4, about a foot longer, with three rows of seats accommodating up to seven people. It’s available in two flavors, the ID.6 X and ID.6 Crozz. In China, prices for the ID.6 start at ¥259,888 or US$36,500 / €33,700, while in Germany, the smaller wheelbase ID.4 starts at €40,335 or $43,600.
Since the ID.6 is similar to ID. models sold in Germany, and the cars he bought were intended for export, the dealer figured it would be easy to prepare them for sale in his home market. According to a report from Automobilwoche, after a few modifications and a software update, the country’s transport authority was prepared to sign off on the vehicles, and he was legally allowed to sell them.
Volkswagen’s legal team stepped in
However, when he attempted to advertise the vehicles for sale, VW stepped in and issued a temporary injunction against Brudny. In a subsequent judgment, a court ruled that the vehicles should be seized, and now VW wants them to be destroyed.
Although VW hasn’t commented on this case specifically, it has told German outlets that Volkswagen models produced in China are different from those for sale in Europe and lack certain legal requirements, such as an automatic emergency call system.
The dealer counters that since he imported the vehicles legally, and received approval from German authorities, there should be no problem. Vehicles produced in China are cheap right now, thanks to low production costs and a recent price war that’s ongoing in the Chinese market. Because of that, the dealer believes he can sell these vehicles at a competitive price, despite all the expenses he incurred bringing them into Germany.
Brudny feels that VW is trying to make an example of him in order to deter others from trying to import Chinese-made vehicles. Futurezone reports that the dealer is currently paying €8,000 (around US$8,600 at current exchange rates) per month in storage costs and that it will cost him €15,000 (around US$16,200) per vehicle to destroy them if a court orders him to do so.
What happens now?
So far, the fate of the dealer’s ID.6s remains unclear. Brudny has appealed the ruling and feels he has a strong case, but precedent would appear to be against him. In 2021, a German court found in favor of Hyundai in a similar case, in which its vehicles were being imported for resale from Eastern European (non-EU) countries. In that case, as in this one, the automaker leaned on trademark law to prevent the imported vehicles from being sold.
Thanks to Milan for the H/T!
