Daily Management Review

BMW To Maintain Its Mexican Plans Amid Threats Of U.S. Import Duties On Vehicles


BMW has plans of manufacturing cars in its new Mexican plants and shipping them to the U.S.

The German auto manufacturer BMW is not going to alter its plans for Mexico while the U.S. threatens the country to impose import duties on Mexican goods, informed a board member of the company and added that its sale takes place all over the world even though most countries have placed tariffs on “imported vehicles”.
Furthermore, BMW is likely to maintain is investment plans in North America, revealed Production in-charge in BMW Board Member, Oliver Zipse.
Zipse took part in the inauguration of a BMW plant worth “$1 billion” situated in San Luis Potosi, Mexico. While, other auto manufacturers have cautioned that imposing “punitive duties” on Mexican imports could ultimately damage the industry. Similarly, Toyota Motor Corp stated that the proposal of imposing tariffs on Mexican imports could “cost its major suppliers $1 billion”.
On the other hand, Trump also stated that Mexico needs to take a “harder” stance for putting an end to the migrants coming across the “U.S.-Mexico border”. In case of failure to do so the country will meet a  “5% tariffs on all its exports to the United States” which could go up to twenty five percent in the later part of the year.
The San Luis plant of BMW produces “its 3 series” which began its operation in the month of April and is equipped to generated as many as “175,000 vehicles” on an annual basis. However, by July, BMW has plans of generating “2,000 vehicles” from this new plant and shipping htem to the U.S.
As per Zipse’s remark:
“It will increase our already strong footprint in North America and provide us with further model variety in addition to our big SAV (sports activity vehicle) production plant in Spartanburg”.
The SAV of BMW belongs to the “sport utility vehicle” category while Reuters added:
“Asked if BMW will try to lobby U.S. officials to drop the tariffs, Zipse suggested that the company will let its robust presence in the United States do the talking. He noted BMW’s plant in Spartanburg, South Carolina, is its largest in the world, with 14,000 direct employees”.