In Spite of Trump, BMW CEO Doubles Down on Plans for Mexico Plant
Unafraid of the president's border tax warning, BMW will go ahead with its planned $1 billion factory in Mexico.
BMW will move forward with its plans to launch a new, $1 billion manufacturing facility for the 3 Series, in spite of President Donald Trump's threats to impose import taxes on U.S.-bound cars, Reuters reports.
Harald Krueger, BMW's CEO, said in an industry conference taking place in Bochum, Germany, that "We need free world trade." He also mentioned the German automaker would continue to invest in its U.S. manufacturing facility based in Spartanburg, South Carolina. The U.S.-based plant produces more than 400,000 BMWs annually, 70 percent of which are exported from America.
Trump has stated the import tax could be as high as 35 percent, which recently made a handful of American automakers squeamish.
Germany's biggest automakers have turned to Mexico for its cheaper labor costs and vicinity to the U.S.—the world's second biggest car market, after China—and have already invested heavily in the country. But if Trump sticks to his guns and imposes a 35 percent trade tariff, there's no telling if and how that might change in the future.