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Italy fines car company $6.4m for misleading ‘made in Italy’ label on Chinese-made vehicles

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The Italian government has imposed a fine of $6.4 million (£5 million) on a car company for allegedly falsely labeling vehicles made in China as Italian-made.

DR Automobiles, based in southern Italy, has been accused by the country’s competition regulator of misleadingly marketing cars as being produced in Italy, despite being predominantly manufactured in China.

DR Automobiles, known for assembling low-cost vehicles using components from Chinese car makers like Chery, BAIC, and JAC, plans to appeal the fine, stating that it never claimed its vehicles were entirely made in Italy.

The regulator found that cars under the DR and EVO brands were sold as Italian-made despite being primarily of Chinese origin, with only minor assembly and finishing work done in Italy.

This enforcement action reflects broader efforts by Italy and the European Union (EU) to address vehicles produced outside the trading bloc.

Recently, Morocco-made Fiat Topolinos were seized in Italy for featuring Italian flag insignia, prompting Fiat’s parent company, Stellantis, to remove the flags from the vehicles. Similarly, Alfa Romeo renamed its Poland-made Milano model to Junior following regulatory pressure.

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The EU’s increased scrutiny extends to Chinese electric vehicles, with the threat of import taxes up to 38% amid concerns about their impact on the region’s motor industry.

China criticized these potential tariffs as violating international trade rules, following the US’s decision to raise tariffs on Chinese electric cars to 100% last month.”

Source-BBC

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