BMW moving some production overseas & raising prices on SC built SUVs due to Trump tariffs

[centerleftFL]

Okay, 2 stories in the same afternoon about effects of Trump tariffs on AMERICAN jobs. Textbook case of the law of unintended consequences.

Go deeper: U.S.-produced cars could go overseas because of Trump’s tariffs

Photo: Al Drago/Getty Images
BMW, the largest auto exporter from the U.S., has announced that it will be moving some of its production overseas and is raising its prices on SUVs built in South Carolina to offset the cost of President Trump's tariffs, according to The Post and Courier of South Carolina.

The big picture: Many foreign auto companies choose to produce cars in the U.S. to keep their manufacturing costs in dollars to avoid currency fluctuations. But Trump’s battle on tariffs with China is starting to eclipse that benefit, and American employment could take a hit.

The (potential) losers:

• Daimler, as well as BMW, stand to suffer the most, according to the WSJ, since they have factories in the U.S. southern states. If they keep production and employment levels the same they will either have to absorb the added costs of exporting to China and Europe, or charge customers more.
• Volvo’s Chief Executive, Hakan Samuelsson, has said the company’s plans to add 4,000 jobs for building cars to export over the next three years “could be jeopardized if something were to restrict trade.”
• Americans: Keep in mind, as production moves overseas, American employment opportunities with these auto makers will be hurt — 80,000 Americans made cars for foreign automakers, according to an Axios review last year. Trump’s advisors warned the administration that launching these tariffs could hurt American employment in the U.S.

The (potential) winners:

• China: At least in the case of BMW's deal, the number of cars produced each year at two facilities in China is expected to spike to 520,000 by 2019, per The Post and Courier.
• Auto manufacturing abroad: Paying a 40% tariff effectively makes competitors’ models abroad cheaper, according to the WSJ. The finance chief of Porsche, Lutz Meschke, said “this is a favorable situation for us because the products from manufacturers in the U.S. are becoming less competitive.”...

Axios
overseas-because-of-trump-1531249927-82669d7e-68a0-4d12-a04f-3421088cdeed.html

 

[shockedcanadian]

If they can't compete, than move overseas. Another company will steal their marketshare.

I've said it for years, why a company wouldn't promote that they are made locally is beyond me. Imagine promoting a car "totally Made in America?" They could charge 10-15% more and since people usually purchase on finance, they will patriotically buy.

Businesses have to make decisions, Trump can't place the profit of a few foreign wankers ahead of U.S National Security. Your economy is a serious issue, trade imbalances would change this.