Trump Bites A German car manufacturers 35 percent of the import tariff Threat
BERLIN - Shares in German car manufacturers tumbled Monday after the U S president elected distinguished BMW AG, Daimler AG and Volkswagen AG, threatening to impose a 35 import duties on their exports of Mexican plants to the U S.
Donald Trump raised concerns in Germany following the comments published Monday in an interview with Bild newspaper suggesting the large country's largest industry could be hit hard by stricter trade rules with the U S.
At 1200 GMT, BMW shares were down 2 to 1 EUR86 January 90 54 Daimler shares fell 2 0-90 EUR69, and Volkswagen shares, which owns luxury car manufacturer Audi, fell in February . 2 to 25 146.
M. Trump distinguished BMW, the Munich manufacturer of luxury sedans and sport utility vehicles.
I would say BMW if they want to build cars in Mexico and sale in the U S A 35 without a fee, they can forget it, M. Trump said, according to a Wall Street Journal translation of his comments in Bild.
They can build cars for the U S A, but for every car that comes in U S A they pay a fee 35 What I'm saying is, they have to build their plant in U S A It will be much better for them and for our efforts.
BMW is preparing to build its sedans 3 Series in a factory in San Luis Potosi, Mexico, from 2019 onwards the plant will add a total capacity of production 3 Series in Germany and China.
M. Trump against Ford Motor Co and General Motors Corp attacks have led them to make concessions earlier this month, Ford scrapped plans for a further 1 6 billion plant in Mexico, choosing instead to build small cars in an existing Mexican plant and invest 700 million in a Michigan plant that will build electric vehicles.
German car manufacturers aren t respond to Mr. Trump warnings In a response to the interview Bild, BMW remained on her.
The plant in Mexico will produce the 3 series for the global market and will be completed in 2019, Klaus Fröhlich, Head of BMW development, told reporters on the sidelines of a technology conference in Munich.
M. Trump has identified the German automotive industry as a whole, suggesting trade with U S was unfair and unbalanced.
When you walk down Fifth Avenue everyone has a Mercedes-Benz parked outside his house, said Mr. Trump.
Addressing Germany, he said that you were very unfair to the U SA is not reciprocal How Chevrolets you see in Germany Not many, maybe not, you do not see anything on it is a one-way street.
Sigmar Gabriel, German Vice Chancellor and Economy Minister, rejected the charges and fired back a barb of his own If US automakers want to sell more in Germany, they just build better cars, he said I can only warn against getting excited now we are not weak and inferior.
German car manufacturers have a long history of manufacturing in Mexico Volkswagen, the largest carmaker by sales worldwide, is one of its largest factories in Puebla, where he began producing Beetles in 1964.
Matthias Wissmann, President of the Association of German Automobile Manufacturers, said import tariffs would hit the German economy and harm the U S.
The U S is not only the second largest export market for German manufacturers, it is also an important manufacturing location from which the world market is supplied, he said Monday.
Daimler and Audi Volkswagen declined to comment didn t immediately respond to a request for comment.
Analysts were intrigued that M. Trump distinguished BMW manufactures SUVs in South Carolina and exports at least 70 of them in other countries.
The automaker has produced 411.171 X-series sport utility vehicles at its plant in South Carolina last year, supporting directly and indirectly about 70 000 jobs, BMW said.
In September 2015, Mercedes said it would invest January 3 billion enlarge its plant in Tuscaloosa County, Alabama, bringing its total investment in the plant 5 8 billion with a workforce 3,800 last year the company produced about 300,000 vehicles in Alabama.
German car manufacturers and others flocked to Mexico to take advantage of the cheap labor and numerous free trade agreements Mexico Audi, for example, is trying to build Q5 SUV in Mexico and exporting European exports to a US plant would lead commercial rates because the US and the European Union n not have a free trade agreement.
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