Quote:
Originally Posted by dkhm3
Quote:
Originally Posted by F32Fleet
Fake news in that the decision to build in Thailand was made well before any of this tariff talk.
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It is ramping up production at the plant. This is a reallocation on resources to counteract market tariffs. This means there will be more opportunities shifted exporting from SC, to other markets. BMW is a business and it makes more sense now to make more cars elsewhere instead of exporting the cars from America. We need to find ways to export more of our stuff to other countries and not the other way around. Otherwise things just become more expensive to American consumers from Tariffs our OWN government hits us with.
"it will simply build more SUVs at its Thailand facility."
"CEO Harald Krueger told analysts ramping up production in Thailand was one action to counteract the tariffs."
https://www.carscoops.com/2018/08/bm...china-tariffs/ |
Thing is that we don't know how many vehicles BMW planned to build out of Thailand over the life of the plant. Surely you don't think a multinational isn't capable of putting out a little spin themselves?
see
Here's what is probablygoing on. The Chinese luxury car buyer generally doesn't like to wait for a vehicle to be built and some will gladly pay 2x for a car if they can get it off a lot from the US. In fact Mercedes and BMW are having to contend with Chinese brokers using US based strawbuyers to buy and then ship vehicles overseas to China.
A Thailand based facility will cut into that underground market and capture those customers who would normally just walk away.
Yes tariffs will have an impact in some way but imo the Reuters article framed it as if tariffs were the sole reason.