Kruska
Diamond Member
Nothing much do do with Tariffs - BMW had calculated in the early 90'ies that the production costs in it's plant (the largest BMW plant in the world) at Spartanburg SC are around 25% less then those in e.g. Germany. Almost all X BMW variants are being built there - due to the US at the time, having been foreseen to be the largest BMW customer market for X (SUV/SAV) vehicles.The same way that Nissan and Volkswagen building cars in the US avoids US tariffs.
BTW, BMW Spartanburg's annual export volume (60% of it's production) stands at around US$ 11 billion.
As for the present factual production costs - they are at around 18% less then in Germany. Foremost due to taking it's sub-suppliers in Mexico and partially Canada into account.
As such Trump threatening Tariffs of 15-25% on Mexico and Canada, factually endangers the plant in Spartanburg and it's 11,000 employees.
Not to mention possible retaliatory tariffs imposed by e.g. China, Mexico, EU, etc. etc. onto products coming from the USA. (e.g. BMW's).
That was long ago - the average shipping costs nowadays for an OEM (Transatlantic-Transpacific, RoRo ship) are at around US$ 400-600/car as opposed to around US$ 2000-3000 for someones private/individual shipping.Assembling a car near where it's going to be sold is actually more practical than shipping a completed car across the ocean.