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BMW in the USA: Strong and successful despite Trump's policies!
Trump's protectionist economic policy is putting a strain on BMW in the USA. But the company remains optimistic despite possible tariffs.
BMW in the USA: Strong and successful despite Trump's policies!
The BMW factory in Spartanburg, South Carolina, has been in operation since 1994 and plays a central role in the company's production strategy in the United States. Despite the successful implementation of this production facility, BMW faces growing challenges under Donald Trump's protectionist economic policies. Trump has said he will impose high tariffs on imported goods, which could particularly affect European automakers, including BMW. His goal is to persuade large companies from Switzerland or Germany to relocate their production facilities to the USA in order to promote American jobs.
The CEO of BMW, Oliver Zipse, is optimistic despite these uncertain requirements. He does not see the announced tariffs as worrying and emphasizes the advantage that the Spartanburg plant offers to BMW. This plant not only produces all BMW SUVs for the US market, but also supplies a majority of the SUV models for global demand. The X3 and X5 models are particularly successful here: in 2023, the X3 was BMW's best-selling model with around 350,000 units sold.
Production and market position
In 2023, BMW produced a total of over 400,000 vehicles, which is significant compared to competitors such as Mercedes-Benz and Audi. Mercedes-Benz, which operates a factory in Tuscaloosa, Alabama, was able to sell 295,000 vehicles, while Audi, which is part of the VW Group and has a factory in Tennessee, only produced 175,000 vehicles. The opportunities to relocate and adapt production in Spartanburg are strong due to the flexible architecture that BMW has developed. The CLAR platform used for the X3 expands manufacturing capabilities by allowing it to be used for other models such as the 3 Series, Z4, 2 Series and 5 Series.
Despite BMW's high production capacity in the US, Zipse expresses concerns about the imposition of the tariffs. Industry experts predict that such tariffs could amount to as much as $80 billion during a possible Trump presidency, and this could greatly impact competition in the American market. This tense situation shows that the company, although it has a strong local presence, continues to suffer from pressure from political decisions.
Developments in the American car market and the possible political changes after the US elections remain exciting as BMW strives to maintain its market position. It remains to be seen whether the planned tariffs will actually be introduced and what impact they will have on companies' production strategies.