America's Largest Auto Exporter To Move Some Production Out Of US, Blames Tariffs

And cue the Trump tweet in 3...2...1...

According to The Post and Courier in South Carolina, BMW said Monday that it would move production for some of its SUVs out of the U.S. as a result of new tariffs placed on the vehicles.

BMW is the largest U.S. auto exporter, and employs 10,000 people at a plant in Spartanburg, S.C. The brand’s key SUV models are produced there.

As The Hill reports, the Germany-based automobile manufacturer signed an agreement with its Chinese partner, Brilliance Automotive Group Holdings, to increase the number of vehicles produced in the country, according to the Charleston newspaper, with the total reaching 520,000 by 2019.

“Our agreement sets a long-term framework for our future in China - a future involving continued investment, further growth and a clear commitment to the development and production of electric vehicles,” said BMW CEO Harald Krueger said.

One thing is certain, it did not take BMW long to make this change (signing a deal with China and abandoning South Carolina) - some might say they were "gone in 60 seconds," and acted "fast and furious."

Comments

Moe Howard pods Tue, 07/10/2018 - 11:34 Permalink

The big question - is BMW's US production subject to tariffs?

 

Second smaller question - will BMW's Chinese production be subject to tariffs if imported into the US?

 

Seems to me this story is about something BMW has planned for years and is just announced because TRUMP.

It has nothing to do with new tariffs.

In reply to by pods

Zerogenous_Zone Moe Howard Tue, 07/10/2018 - 11:39 Permalink

exporting jobs, resources and pollution to a nation who cares little about wages, health and the environment...

 

therein lies the biggest fallacy of global warming...and most of the tight-sphincter liberals must LOVE sweat shops and HATE unions...

 

right?!

 

just add restrictive taxes like CA on items NOT produced in countries with FREE elections...

 

zerogenous_zone

In reply to by Moe Howard

glenlloyd Moe Howard Tue, 07/10/2018 - 11:58 Permalink

I would tend to agree.

I don't believe that auto makers make decisions this quickly, I think this was happening anyway, aka already planned, and the media report was either skewed to suggest that it was Trump or that BMW wanted to point the finger at someone for it and Trump was convenient.

If it's really based on the tariffs then it happened amazingly fast for the bureaucracy that it an auto maker.

In reply to by Moe Howard

J Mahoney Moe Howard Tue, 07/10/2018 - 12:48 Permalink

Agree, has more to do with the number of millionaires in China compared to the US (many more in China) - Traverse, Tahoe, Suburban, Explorer, Pilot, Armada, Pathfinder are too formidable of competition for the overpriced BMW. Wealthy Chinese are ALL ABOUT SHOWING OFF WEALTH (even more so than snobby US rich folk) so its obvious where BMW should be located.

In reply to by Moe Howard

AFKeeker Moe Howard Tue, 07/10/2018 - 14:45 Permalink

It's a very simple situation.

 

These companies are moving production of vehicles meant for foreign sales to foreign plants, that way they aren't caught up in Trump's dick measuring with our allies.

 

They're keeping their domestic production domestic, they're just going to have to increase the sticker price to account for the more expensive materials like steel.

In reply to by Moe Howard

AGuy Moe Howard Tue, 07/10/2018 - 17:38 Permalink

"Seems to me this story is about something BMW has planned for years and is just announced because TRUMP."

Don't think so. I Stated months ago that this would happen. Tarriff will just speed up offshoring production. Companies that stay are just going to raise prices instead of expanding. if you can make more profit by raising prices and do nothing to production, why wouldn't you? The Trade wars is just going to create Huuuge Inflation.

In reply to by Moe Howard

Offthebeach Consuelo Tue, 07/10/2018 - 11:29 Permalink

You try to get a duct taped, hog tied Big Vinny Bada Boom AND his driver Little Tony into the back of a SUV.  Aint gonna work.  Its too high to lift, plus, there they are, with you.  Very unpleasant on a long drive up the Van Wyck Expressway.  No, Town Car, Sedan D'Ville the only way.  Low trunk, sound proof, room for three and shovels.  

In reply to by Consuelo