[Paul-Bracq-BMW]

When Politics gets in the way of business... There is currently a free trade agreement between the US, Mexico and Canada and the new US President is threatening to kill it... IMO, you can't have it both ways: cheap priced goods and locally made... Companies will always try to find the cheapest way to make their products whenever they can. Since the Mexico plant is for worldwide cars, I don't see it being stopped. The plant is for the future 2019 3 Series.

Original article from Reuters: http://www.reuters.com/article/us-us...-idUSKBN14Z0XY.


Trump threatens BMW with border tax on cars built in Mexico

President-elect Donald Trump has warned the United States will impose a border tax of 35 percent on cars that German carmaker BMW plans to build at a new plant in Mexico and export to the U.S. market.

Trump was speaking in an interview with German newspaper Bild, which on Sunday released excerpts of his comments translated into German.

A BMW spokeswoman said a BMW Group plant in San Luis Potosi would build the BMW 3 Series starting from 2019, with the output intended for the world market. The plant in Mexico would be an addition to existing 3 Series production facilities in Germany and China.

Trump said BMW should build its new car factory in the United States because this would be "much better" for the company.

He went on to say Germany was a great car producer, borne out by Mercedes Benz cars being a frequent sight in New York, but there was no reciprocity.

Germans were not buying Chevrolets at the same rate, he said, making the business relationship an unfair one-way street. He said he was an advocate of free trade, but not at any cost.

The BMW spokeswoman said the company was "very much at home in the U.S.," employing directly and indirectly nearly 70,000 people in the country.

(Reporting by Michael Nienaber and Edward Taylor; writing by Vera Eckert; editing by Andrew Roche)

[overcoil]

I'd prefer my BMW be made in Germany.

[Paul-Bracq-BMW]

Originally Posted by ScottSinger

I'd prefer my BMW be made in Germany.

If the engineering is German, the build process, materials and quality is upheld, it does not really matter where the car is built IMO...

[jpnh]

Originally Posted by ScottSinger

I'd prefer my BMW be made in Germany.

Ditto but Germany isnt on the menu apparently since its the 3 series

I'd prefer a US made 3 to a mexican made 3 every day of the week

[BeEmVe]

Lots of threats are coming from the orange anal orifice. Of which, few will have little basis in reality.

[jpnh]

Sadly this thread is looking like its doomed to be banished to the politics and religion forum

[Sephiroth]

Its going to be interesting to see how businesses deal with this type of behavior, ie, tweets from the exec branch. Its such an unusual way to communicate these threats.

[cruisingdownthestreet]

Originally Posted by BeEmVe

Lots of threats are coming from the orange anal orifice. Of which, few will have little basis in reality.

haha, "Ootah"

[jgoens]

This is really very flawed. Trump's pledge was to tax US companies that were producing outside the US but now taxing a foreign company producing in a cheaper company. He might as well place the tax on every good imported. And another thing, the tariff thing translates to more taxes for Americans. Where do the Tariffs go? The foreign company will have to raise the price to the consumer who is basically sending more money to the government. Congress and the wealthiest in the country should love this plan as it continues the transfer of money.

[josec70]

What he wants to do and what he'll be able to actually do are not one and the same. Time will tell....

[DETSGTSTARSKY]

I don't really like U.S. built BMW's. I really DON'T want one built in mexico.

[NickyC]

Maybe he can get BMW to build the wall?

[Ali Shiralian]

o

Originally Posted by NickyC

Maybe he can get BMW to build the wall?

[insanecoder]

I'm afraid BMWs will be going up in the next 4 years
whether because of the tariffs or with inflation

[jpnh]

Originally Posted by insanecoder

I'm afraid BMWs will be going up in the next 4 years
whether because of the tariffs or with inflation

Trade with Germany and US is more or less on a level playing field so I wouldnt expect any changes there

Clearly there wont be any change for BMW's built in the US

Prices always go up.....this is a function of fractional reserve banking and fiat currency

[insanecoder]

I guess Im saying the prices will likely go up more than usual in light of these headwinds theres not much holding them back going forward

[WhatsADSM]

European Delivery would be a lot more advantageous if this was the case... no?

[jpnh]

Originally Posted by insanecoder

I guess Im saying the prices will likely go up more than usual in light of these headwinds theres not much holding them back going forward

New Tarrifs/Duties with German production vehicles are not bloody likely

If the USD continues to strengthen vs the Euro then German cars should be more affordable not less

[insanecoder]

Originally Posted by jpnh

New Tarrifs/Duties with German production vehicles are not bloody likely

If the USD continues to strengthen vs the Euro then German cars should be more affordable not less

depend on how far Trump would be willing to go to try to revive the rust belt & Detroit
Its not a certainty the USD will be going up vs the EUR either and no small a certainty the Germans could decouple from the EUR if it begins to fracture
either way I do not believe a protectionist regime would favor lower import prices

[jpnh]

Without getting into politics whats being discussed is not protectionism as much as its a leveling of the playing field

[Germanauto]

This is why despite leaning right, I didn't vote for him (or any candidate for that matter).

[Sam_M]

This isn't about jobs, or protectionism.

This is about sniping at Germany. I'll leave you to draw your own conclusions as to why.