The Italian government has imposed a fine of $6.4 million (£5 million) on a car company for allegedly misrepresenting vehicles manufactured in China as being produced in Italy.
DR Automobiles, based in southern Italy, is accused by the country’s competition regulator of misleadingly marketing cars as being made in Italy, despite the majority of their production occurring in China.
The company intends to contest the fine, asserting that it never made claims suggesting its vehicles were entirely manufactured in Italy.
DR Automobiles specializes in assembling low-cost vehicles, utilizing components sourced from Chinese car manufacturers such as Chery, BAIC, and JAC.
According to the regulator, cars sold under the DR and EVO brands were falsely portrayed as Italian-made, despite originating primarily from China. It stated that only minor assembly and finishing work took place in Italy.
“This practice has coincided with a period in which the company recorded marked growth in sales of DR and EVO vehicles in the Italian market,” the authority added.
The enforcement actions are occurring amid heightened scrutiny from Italy and the European Union (EU) concerning vehicles manufactured outside the trading bloc.
Last month, numerous Fiat Topolinos produced in Morocco were confiscated in the Italian port of Livorno due to the presence of Italian flag insignia.
Stellantis, the parent company of Fiat, stated that it had complied with regulations but subsequently removed the flags from the vehicles.
In April, Alfa Romeo, another Italian brand under Stellantis, opted to rename its new Milano model, which is manufactured in Poland, as Junior following regulatory pressure.
Recently, the EU issued a warning of potential import taxes of up to 38% on Chinese electric vehicles, labeling them as a threat to the region’s automotive industry.
These proposed tariffs would be in addition to the existing 10% duty imposed on all Chinese electric car imports to the EU.
China responded by condemning the tariffs as a violation of international trade norms and characterized the investigation as “protectionist.”
The announcement coincided with the United States raising its tariff on Chinese electric cars from 25% to 100% last month.