The Italian government has fined DR Automobiles $6.4 million for allegedly misrepresenting cars made in China as Italian-made.
According to Italy’s competition regulator, the company falsely marketed vehicles as produced in Italy, despite most of the manufacturing being done in China.
DR Automobiles said in response that the company didn’t mention the cars were all made in Italy.
Company Cars Were Chinese Made
The company, based in southern Italy, assembles low-cost vehicles using parts from Chinese manufacturers Chery, BAIC, and JAC.
The regulator stated that the company’s DR and EVO brands were sold as Italian-made but were predominantly of Chinese origin, with only minor assembly and finishing work performed in Italy.
Fraud Helped Significant Sales
The regulator highlighted that the practice coincided with significant sales growth for DR and EVO vehicles in Italy.
In response, China criticized the proposed tariffs as violating international trade rules and labeled the investigation as “protectionism.”
The fine follows the United States increasing its tariff on Chinese electric cars from 25% to 100% last month.
