BMW Ponders Sourcing Transmissions Locally for Spartanburg Plant

News | March 18th, 2019 by 3
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Considering the way things are going these days, big companies simply can’t rely on the promises made by local governments. The landscape can change in …

Considering the way things are going these days, big companies simply can’t rely on the promises made by local governments. The landscape can change in literally days and companies can’t just change their business models in an instant. Therefore, they need to adapt as quickly as possible and even take some course of action to make sure they are ahead of the curve all the time. BMW is constantly monitoring changes in the business landscape so they are now looking at further ways to increase their presence on US soil.

Recent comments made by President Trump in regards to the European Union and fair trades, have promoted German automakers to analyze all sort of scenarios. In case the White House decides to impose tariffs on certain car models or car parts, BMW needs to make sure that won’t interrupt its business operations. Since the largest BMW plant in the world is located in South Carolina, a good idea could be to source more parts locally.

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That’s what they are pondering according to a report from Automotive News. Apparently, BMW is looking to source their transmissions from the US, thus becoming invulnerable to further trade tariff escalations. Initially, one would think of Aisin but since the Spartanburg plant handles only CLAR-built SUVs, chances are BMW will be looking to enter talks with ZF to see if there’s any way to have its 8-speed gearboxes shipped over to the South Carolina plant instead.

It’s a plant that could become reality rather easily too. ZF has a plant just 28 miles away from Spartanburg, one that has an annual capacity of 800,000 units. At the moment it is fully booked, the 1.4-million square feet facility delivering to Volvo, Land Rover and FCA. Should the two sides reach an agreement, this could work out rather well for both on the long run.

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