Donald Trump warns BMW of 35 percent tax on import cars from Mexico

News | January 15th, 2017 by 57
BMW Plant Mexico 20 750x500

President-elect Donald Trump has warned BMW of a potential 35 percent tax on BMW cars imported from its new plant in Mexico. Trump was speaking in …

President-elect Donald Trump has warned BMW of a potential 35 percent tax on BMW cars imported from its new plant in Mexico. Trump was speaking in an interview with German newspaper Bild, which on Sunday released excerpts of his comments translated into German.

A BMW spokeswoman said a BMW Group plant in San Luis Potosi would build the BMW 3 Series starting from 2019, with the output intended for the world market. The plant in Mexico would be an addition to existing 3 Series production facilities in Germany and China.

BMW Plant Mexico 11 750x500

According to Bild, Trump said the German automaker should build its new car factory in the United States because this would be “much better” for the company.

He went on to say Germany was a great car producer.

Read Also: BMW Mexico Plant Will Be Capable of Building Any RWD Model

Trump brought out the argument of Germans not buying Chevrolets at the same rate as buying BMWs, which, according to the President-Elect, it’s an unfair one-way street. Allegedly Trump said he’s all pro fair-trade, but not at any cost.

A BMW spokeswoman said the company was “very much at home in the U.S.,” employing directly and indirectly nearly 70,000 people in the country.

[Source: CNBC]

57 responses to “Donald Trump warns BMW of 35 percent tax on import cars from Mexico”

  1. Kaisuke971 says:

    Wtf is that fair trade comment, if Chevrolets are shit and germans don’t buy them they just have to build better cars ! It’s not fair if one side has to make more effort than the other.

    • guest says:

      Germans buy Opels, sold in the US as Regal, built in Canada. Buick Envision made in China, as were Chevy Equinox engines, next Equinox built in Canada, Spark is Korean. What a mess.

      • Kaisuke971 says:

        Do they even buy Opels anymore ? I’m french and i don’t see them as much as before, mainly because they’ve lost their reputation of being super solid thanks to the GM reliability that seems to be going down.

  2. guest says:

    Spartanburg is already their largest plant with expansion underway, Trump thinks they could locate & build another without interrupting production plans? Trump’s tariff could attract buyers, purchasing a Mexican 3 would be a big f.u. (if they’re allowed thru his imaginary wall). I understand his confusion, he’s never manufactured anything in his life. Let’s hope predictions of his impeachment are correct & he’ll be gone before 2019.

    • guest says:

      The Donald also seems indifferent to the fact that every import vehicle employs Americans, from dealerships thru parts thru gas stations.

    • Kaisuke971 says:

      Also it’s not like the Mexican 3 are exclusively built for the Americans, i’m pretty sure the models built there go to the whole continent. BMW is German anyway so i don’t understand his problem.

    • Alexandr Kjelbrand says:

      So you agree with neo-globalist scumbag George Soros vision of a globalized world? If so – YOU have a problem: 3 billion workers in line to take YOUR jobs for less pay than you. So, what do you choose?

  3. Max says:

    WTF did elect this idiot? Seriously, its unbelievable how many idiots are living in the US, having no clue about anything.
    But, I believe BMW can be very calmed about that, they are just bringing their 3ers from Germany and the mexican ones somewhere else. Its stupid, but whatever…
    He will never understand that BMW has already its biggest factory in the US and is very well connected to the country. But maybe some agencys will find any evidences about his affairs etc. that he will have to leave anytime soon. Would be good for everyone, the world and the US.

    • Alexandr Kjelbrand says:

      I did and who are you to call me an idiot? And if BMW has its biggest factory outside Germany … what are you yelling about! You intolerante, leftist!

      • guest says:

        intolerant. Anyone who reads your comments is who will call you an idiot. And the fact that you voted for one puts you in the minority.

  4. PHZ says:

    Trump is dead wrong. GM (Opel) and Ford have a 14.9% market share in Germany. VW, BMW, and Mercedes combined only have an 8% market share in the US! BMW is the largest car exporter in the US by $ volume.

  5. seancorr says:

    He’s a businessman and he doesn’t understand why BMW build a factory in Mexico….right, and does he not remember there’s a huge BMW factory on US soil too? *facepalm*

  6. JohnS1000RR says:

    A BMW built in Mexico!? Better come with free cocaine or else, no buy!

  7. PDJ says:

    Have to consider the source..negotiations always start from an absurd edge and then move towards a more reasonable center. Its the way the POTUS-Elect has done business for decades..don’t expect it to change. He seems to really like to discover and explore the extreme edge points.

  8. PA_observer says:

    The US accounts for 18% of BMW sales. I would suggest that BMW plan accordingly. Relocate some SUV production to avoid retaliatory tariffs and pass the tariff price to the US customers on the sedans. In the long term, establishing lower cost SUV production facilities in Mexico or elsewhere will reap financial benefits.

    • guest says:

      One of the reasons Spartanburg is their biggest plant is currency fluctuations have cost them billions this century alone, no one knows what those will be in future, global manufacture hedges their bets.

      • PA_observer says:

        Yes, for much of the post 9/11 period, the US pursed a low interest rate policy, deflating the Dollar relative to the Euro. The period of exchange rate advanDeer has ended with the strengthening US economy and placing the profitability of the SC plant at risk.

        Diversification of production is the only means of minimizing currency risk. Just ask
        Caterpillar or John Deere Corp.

        • guest says:

          The deutschmark tanked in the ’70’s, one reason German vehicles became perceived as premium, their list prices skyrocketed, VW started producing in the U.S. to compete. BMW went from selling the e3 as the $4,995 Bavaria to the $10k 3.0Si, with leather, alloys, pw./ps./pb. This has been going on for a long, long time.

          • PA_observer says:

            Remember the german full-employment policy of the early 1980’s? Leftover VW Scirrocos were still on the dealer lots at year later and selling for 60% of MSRP.

            It was a buyers market at that time, but loan rates were around 12%.

          • guest says:

            Scirrocos were built by Karmann, like the Ghia before it (& e9), so guessing they were production capacity limited. But there are always reasons 2 seat coupes don’t sell, tend to start hot & cool off, sometimes quickly. Mk 1 would have been at end of life, 2nd. gen. was UGLY!

          • PA_observer says:

            There were plenty of Scirrocos, Rabbits and Dashers on the lots during those years. When I was looking at the leftover Scirroco, the new Rabbit GTI had just been released and they also had a turbo diesel. Lots of innovation, but few US sales, as always.

          • guest says:

            Apparently VW Westmoreland sales fell 60% in 5 yrs., not all due to their product. Gas prices stabilized, Japan started producing in America, and the domestic manufacturers offered new competition, including VW-engined K-cars.

          • PA_observer says:

            I was dealing with AutoHaus in Lancaster, PA

          • guest says:

            From Westmoreland.

          • PA_observer says:

            I think you mean the dollar tanked relative the Deutschmark. During the 1960’s the US $ was equivalent to ~4 DM. The dollar then slid to a low of 1.43DM in 1995, then recovered.
            yr ……DM/$
            1970…3.65
            1971…3.48
            1972…3.19
            1973…2.65
            1974…2.58
            1975…2.46
            1976…2.52
            1977…2.32
            1978…2.00
            1979…1.83
            1980…1.82
            1981…2.26
            1982…2.43
            1983…2.55
            1984…2.85
            1985…2.94
            1986…2.17
            1987…1.80
            1988…1.76
            1989…1.88
            1990…1.62
            1991…1.66
            1992…1.56
            1993…1.66
            1994…1.62
            1995…1.43
            1996…1.50
            1997…1.74
            1998…1.76
            1999…2.08
            2000…1.89
            2001…2007

            Source: http://www.history.ucsb.edu/faculty/marcuse/projects/currency.htm#tables

          • guest says:

            True!

  9. PA_observer says:

    In case you were wondering, the next President of the US is mentally unstable.

  10. Marten says:

    BMW produces more cars in the U.S. than it sells, Trump should better thanks this company wich employs thousands of american workers and helping to improve the US trade balance rather than threatening them publicly.
    Secondly this idiot should know that if the germans don’t buy chevys it’s because Chevrolet don’t sell cars in Germany, GM owns a brand in Europe called Opel, and Opel sells lot of cars which shares most of their components with chevys.
    Trump should also stop commenting on the domestic policies of foreign countries. Putin don’t tell to America that allowing gay marriage was a mistake, Hollande don’t state that the US healthcare system is a complete failure.
    Trump should mind about it’s own business, and its business should be America, not german or british domestic policies, the United States already have bad relations with China, Mexico, the Vatican, and Canada, no need to add Germany to the list.

  11. […] Despite warnings from President Trump, BMW Group says it will stay committed to its plans to build a plant in Mexico. “We need free world trade,” BMW CEO Harald Krueger told the CAR-Symposium automotive congress in Bochum on Wednesday. […]

  12. Thomas Kline says:

    What they meant to say but couldn’t. We need cheap labor and no EPA restrictions.

  13. […] President Donal Trump follows through on his promise to increase import taxes on cars, BMW’s plant in Spartanburg might go through a series of […]

  14. […] President Donal Trump follows through on his promise to increase import taxes on cars, BMW’s plant in Spartanburg might go through a series of […]

  15. […] Despite warnings from President Trump, BMW Group said last month it will stay committed to its plans to build a plant in Mexico. “We need free world trade,” BMW CEO Harald Krueger told the CAR-Symposium automotive congress in Bochum on Wednesday. […]

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