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BMW Announces Commitment To US Plant

BMW will stick with its colossal investment for Spartanburg, South Carolina plant to boost production.

If you keep up with the never-ending barrage of news, you’ll most likely know that the United States and China have been locked in a trade war since President Donald Trump took office just under two years ago. This has prompted each nation to implement a series of higher tariffs on traded goods, including automobiles, which is expected to cost nearly $340 million this year alone. While this may spell doom for certain imported vehicles, some automakers are staying optimistic, with BMW recently announcing that the trade war will play only a secondary role in terms of decisions regarding where to build its cars.

Instead, BMW will continue to base its choices on market demand. At a panel discussion in Paris, BMW’s Chief Financial Officer Nicolas Peter reiterated his company’s focus on market expectations. Peter expressed his hopefulness, saying that he believes that “eventually men and women in charge will realize” that the current trade war and increasing tariffs “aren’t the best for citizens.”

He continued, asserting that they don’t chose where to invest based on tariff and trade issues, but rather that “it is mostly about whether the market is growing.”

Since July, BMW has been experiencing a 40 percent tariff on the SUVs that it ships to China from its US plant. The German automaker already produces the X3 SUV in China, along with sedans like the 1-, 3-, and 5-Series. BMW is close to making a decision about whether to begin production of another model in China, potentially to avoid these massive taxes on some of its most popular models. However, Peter did assert that BMW will continue with its plans for a $600 million investment into its factory in Spartanburg, South Carolina. The factory is currently BMW’s largest, and the new investment would allow it to increase production to up to 450,000 crossovers each year.