BMW’s New Factory in Mexico Faces Trump Tariff Hit
BMW AG is formally launching its $1 billion factory in San Luis Potosi, Mexico, next week, just ahead of a threatened 5% U.S. tariff on the cars it makes.
President Donald Trump has vowed to impose the 5% levy on virtually all products from Mexico, beginning June 10. He also says he may steadily increase the tax to 25% by Oct. 1 unless Mexico takes dramatic steps to halt the flow of illegal migrants into the U.S.
Mexican trade envoys say they will seek meetings with their U.S. counterparts in Washington, D.C., next week in hopes of averting the new tariff.
In the meantime, Mexico has joined Canada in moving ahead to ratify the U.S.-Mexico-Canada trade pact they signed with the U.S. last November. One objective of the agreement is to avoid tariffs among the signatories.
The new BMW plant is scheduled to churn out 3 Series sedans—BMW’s most popular model—at an annual rate of 150,000 units. About 70% of the output is earmarked for the North American market.
But Bloomberg News says the plant now may ramp up more slowly than originally expected.
The way people are going to get transportation is changing the world over. Get ready for it.
As OEMs and suppliers seek lightweight solutions to meet higher fuel economy standards through multi-material structures, conventional welding techniques are beginning to give way to new solid-state joining methods better suited for creating strong bonds between dissimilar metals.
Customers want quieter vehicles. They also want cars and trucks that have better fuel economy. Until now, the two goals were mutually exclusive because making a vehicle quieter meant adding more layers of heavy insulating materials.