The more politically-inclined might be aware of the taxes and tariffs that are complicating our current economic state. These decisions are affecting the automotive industry, especially now that BMW built a new plant in Mexico.
For those not in tune to these issues. President Trump has issued various trade tariffs on vehicle imports from China, Germany, and Mexico. This means it costs more in taxes to bring things in from those countries. A similar situation made Tesla vehicles more expensive in China, leading to the brand building their own factory in the country instead of importing them.
Unfortunately for BMW, they've just finished building a new plant in San Luis Potosi, Central Mexico. But a majority of the vehicles they intend to produce sell primarily in the United States. With an at-most 25% increase, BMW is looking at $10,000-$12,000 increase in cost, rendering the plant almost useless. A rough cost, since the plant took nearly $1 billion to build.
It's not clear how this will affect us, the consumer. We might see a rise in the cost of BMWs in the future. The tariffs might also dissolve and we see no change. Only time will tell.
BMW Faces Tariff Trouble After Building Mexico Plant
Posted By: LizardRock | 0 Comment(s) Posted On: Jun 07, 2019 @ 01:36 PM