Tariff War Casualty? America's Largest Car Exporter Shifts Some Production to China

[jpak]

https://www.extremetech.com/extreme/273171-tariff-war-casualty-americas-largest-car-exporter-shifts-some-production-to-china

President Trump’s plan to save American jobs by putting tariffs on foreign imports may do the opposite. Retaliatory tariffs imposed by China have BMW hiking prices in China. Also, BMW, in conjunction with China’s Brilliance, will build X3 SUVs in China. Until now, the X3 has been exclusively made in Spartanburg, SC, the world’s largest BMW factory.

BMW is somewhat unique among international automakers that have factories in the United States. The majority of BMW’s production is exported because every BMW SUV (except two subcompact models) is made here, exclusively. Other automakers produce here mostly for consumption here. But BMW is now building some X3s in China.

Tuesday, BMW in Germany announced an expansion of its ongoing joint venture in China, BMW Brilliance Automotive (BBA), in the presence of China’s Prime Minister Li Keqiang and Germany’s Chancellor Angela Merkel. According to BMW:

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Harald Krüger, BMW AG board chairman, said, “Our agreement sets a long-term framework for our future in China … The next chapter of our cooperation has the potential to go beyond our existing motto – ‘in China, for China.’ The all-electric BMW iX3, produced by BBA from 2020, will find customers around the world.”

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