Unless you’ve been living under a rock for the past year, you probably already heard that there’s a trade war looming over us all. At the moment, the US is negotiating with both China and the EU regarding the enforcement of extra taxes on certain products, taxes that are likely lead to a drop in demand. According to Automotive News, during a recent automotive conference in Stuttgart, the BMW CEO, Oliver Zipse, said this scenario is a losing one for everyone involved. “If they do this, then we are all losers,” he said. “I have the impression they are listening carefully. The export model sustains many jobs in the United States.”
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He is, of course, referring to BMW’s plant in Spartanburg, South Carolina, one of the biggest the Bavarian manufacturer has around the globe.
That’s where most BMW X models are made and they are one of the biggest exporters in the US right now, which could be affected by a trade war. Around 70 percent of the cars made in South Carolina are going to other countries and that brings a lot of revenue back to the US. The plant also provides a large number of jobs for people in the vicinity. BMW has recently invested a lot of money into expanding its plant’s manufacturing capacity, which is now capable of churning out around 450,000 cars per year.
These concerns have been shared by the BMW CEO with Robert Lighthizer, the US trade representative earlier this year. BMW has already been making moves to safeguard its business, by expanding other manufacturing locations around the world, the most important of which being located in China.
It makes no sense not to produce the 3-series and the M2 in the largest Bmw factory (Spartanburg) for it’s main market (USA) and to accept from their traditional customers in USA and Europe that they should pay higher prices for a Bmw from a third world country with alienated design (Next gen M beaver teeth).
Trump voter?!
I bet Mexicans can produce cars equal if not better than Americans easily! It’s just the arrogance of the “great America” which really think it’s special. Additionally, you might not know, but many many parts for all kinds of cars built in America are already produced in Mexico anyway…
BMW manufacture on a half dozen different continents.
Antarctic and Atlantis are missing.
I’m not US citizen. If I were one, I wouldn’t vote for him.
As BMW already builds more cars (including the most popular SAV models) in the US than anywhere else, how does the US negotiating more favorable trade deals for US exports hurt BMW jobs in the US?
Isn’t it obvious ?
Most SAVs are built in the US, they sell like crazy in Europe as well, what would happen if Tariffs are applied to imports in EU ?
Or do you maybe think the EU will let the US apply tariffs without reaction ?
This is what is happening at the moment, no Trade deal discussion, only pure blackmailing from Trump, threatening to raise import tariffs.
US let itself to be a sucker to the rest of the world for far too long. Pity, that past administrations didn´t do something about it in small steps. Then DT wouldn´t have do so much in such a short time.
Sucker that is the 1st economic power in the world … I would like to be a sucker too then !
2008 & GM bankruptcy didn’t happen because of “the rest of the world”, how long did America enjoy cheap Chinese consumer products, how many illegal labour were cleaning Trump toilets?
I respect Trump I think he isnt the president everyone wanted but he is the one USA need…Easy for people to judge when they are not even citizens of the US …Im also not a citizen but I totally understand why he was elected
You respect the illuminati King? I am shocked.
Im guessing you love Obama…well guess what… he was worse ….People paint a picture of him being so bad but its all unfortunatelly because of the colour of his skin…and dont act as if thats not true
your not allowed to be proud if you are of european descent because that would be racist
I’m not an Obama fan either. At least Obama hasn’t fought trade wars with the rest of the world. Trump’s second presidency will bring not only the biggest financial crisis that the world has ever seen, but also the third world war against Russia and China. Think of my words.
Okay doomsday prepper
I have a custom-ordered 2020 530e due for delivery in late Dec. It is unlikely to be on a boat by the date Trump has said , in his “great and unmatched wisdom” , he will decide to put a 20% import duty on German cars. What happens with my pricing should this happen? Will BMWNA eat the extra tariff for cars on order before the imposition? Will BMWNA eat some, or all, of the increased tariffs for all cars? I can tell you who won’t be eating the increased tariff: ME.
Nice opinion article with no merit or facts to back it up! I work there and the facts are that they are still hiring daily!
It’s an article written by AutoNews
Much reportage (& electric green Tesla comment pages) is about BMW going under, as they do record volume & spend billion$ building new factories for further expansion. 1 reason Spartanburg exists & has become BMW’s largest factory is they used to lose billion$ on annual global currency fluctuations, they survived that, they will survive this. Keep up the good work!
Where’s the opinion? It’s a very short article with the points clearly made.
1. Around 70 percent of the cars made in South Carolina are going to other countries.
2. Extra taxes (tariffs) on certain products are likely to lead to a drop in demand in these other countries.
3. Drops in demand would reduce the required workforce (layoffs) in the US and push BMW to address it by expanding other manufacturing locations around the world, the most important of which being located in China.
In short, if the export sales of the X models from the US are hurt by these tariffs, they’ll start building the X models in China instead to solve that.
So it doesn’t matter what the situation at your job is today when we’re talking about the future, based on what ultimately happens with these tariffs.
The opinion is in the heading! Production hasn’t slowed. It has only increased. So I maybe I should say that this article is full of speculation
You are talking in past, the article is about the future. Can you spot the difference?!
1 is historic fact, other is speculative fiction. Like talking about Tesla sales volume.
Since Spartanburg has expanded into BMW’s largest factory of the 6 continents they produce on, how do they magically “start building the X models in China instead”? China is a co-production that is already expanding for BEV, tariffs would hit America’s largest exporter of vehicles & throw thousands out of work so let’s hope for impeachment.
Two wrong things in your comment: its not the largest by volume anymore, Chinas is already bigger (both factorys combined of course).
Also, the X1, X2, X3 are already been built there, so very likely other volume models will follow considering the big market and profit.
As mentioned, China is co-production, aren’t BMW 1st Western manufacturer allowed to increase participation? It will be interesting to see what happens, rumours are BMW expand on both fronts, engine factory in America (following their ZF transmission deal), BEV MINI in China. Given their investments in autonomy, rideshare & GPS (& partnerships with Daimler, Tata & Brilliance) profitable future growth may no longer be measured in sales volume.
Bmw’s second homeland after Bavaria is USA. I see Bmw as a bavarian american brand first. Bmw should better be patriotic and pay more tribute to it’s second homeland USA and stay premium, coz made in Mexico is cheap, not premium worthy.
Because you just have no clue, as simple as that.
Bmw is the USA’s No. 1 car exporter. USA is the biggest market of M. The biggest Bmw factory in the world is located in USA. USA has the biggest Bmw Fan base. Bmwblog is a US Bmw Fan site. Thanks for understanding.
Dey tek r jers!!!