BMW to Move Some Production from U.S. to China in Response to Tariffs

By Paul Riegler on 11 July 2018
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A new BMW being introduced at the automaker’s plant in Spartanburg, S.C.

BMW, which is the largest exporter of autobiles in the United States, said Monday it plans to build more of its SUVs overseas as a result of new tariffs on U.S. goods in China.

BMW also said it would raise the price of vehicles built in South Carolina and sold in China to offset that country’s new 40% import tax on U.S.-built vehicles. China imposed the new tariff in response to tariffs placed on Chinese goods by the Trump administration.

The Munich-based company said it had signed an agreement with its Chinese partner, Brilliance Automotive Group Holdings, to increase production there. BMW plans to produce 520,000 cars in China 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’s CEO, Harold Krüger.

(Photo: Accura Media Group)