The Italian authorities has fined a automotive firm $6.4m (£5m) for allegedly branding autos that have been made in China as being produced in Italy.
DR Cars deceptive market vehicles as being produced in Italy, despite the fact that they have been principally made in China, in response to the nation’s competitors regulator.
The agency mentioned it could attraction towards the fantastic because it had by no means claimed its autos have been fully made in Italy.
Southern Italy-based DR Cars assembles low-cost autos, utilizing elements produced by Chinese language automotive makers Chery, BAIC and JAC.
The regulator mentioned vehicles beneath the corporate’s DR and EVO manufacturers have been bought as being Italian-made however have been largely of Chinese language origin.
Solely minor meeting and ending work was carried out in Italy, it mentioned.
“This observe has coincided with a interval by which the corporate recorded marked progress in gross sales of DR and EVO autos within the Italian market,” the authority added.
The transfer comes as Italy and the European Union (EU) as an entire are cracking down on vehicles produced exterior the buying and selling bloc.
Final month, dozens of Morocco-made Fiat Topolinos have been seized within the Italian port of Livorno as a result of they’d Italian flag insignia.
Fiat’s guardian firm Stellantis mentioned it had adopted rules however has since eliminated the flags from the autos.
Final week, the EU threatened to hit Chinese language electrical autos with import taxes of as much as 38%, after politicians referred to as them a menace to the area’s motor business.
These fees would come on high of the present price of 10% levied on all Chinese language electrical automotive imports to the EU.
In response, China mentioned the tariffs violated worldwide commerce guidelines and described the investigation as “protectionism”.
The announcement got here after the US final month raised its tariff on Chinese language electrical vehicles from 25% to 100%.
