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Originally Posted by F32Fleet
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?
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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.
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Actually having ran a successful business and sold it, I think it is simpler than that.
BMW faces increased costs based on tariffs.
BMW shifts some production and investment to an existing facility that is cheaper to build the same item.
BMW saves money by avoiding tariffs.
Spartanburg is one plant of many BMW owns, one part of the whole, move resources as needed to maximize profit. That's business.
What do you want to spin? It's not bad news to investors, it's good news.