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BMW Munich Plant Photo elected president Donald Trump warns against BMW, Daimler and Volkswagen against building cars in Mexico Martin Leissl Bloomberg.
BMW Munich Plant Photo elected president Donald Trump warns against BMW, Daimler and Volkswagen against building cars in Mexico Martin Leissl Bloomberg.
Trump threatens German car manufacturers with import duties 35 U S Add to.
US President-elect Donald Trump warned German car manufacturers, it would impose a border tax of 35 percent on imported vehicles in the US market, a plan that drew sharp rebukes from Berlin and hit the actions of manufacturers automobiles.
In an interview with the German newspaper Bild, published on Monday, Trump criticized German car makers like BMW, Daimler and Volkswagen for not producing more cars on the floor U S.
If you want to build cars in the world, then I wish you the best you can build cars for the US, but for every car that comes in the USA, you will pay 35 percent tax, Trump said in remarks translated into German.
I would say BMW that if you build a plant in Mexico and intend to sell cars in the United States without a tax of 35 percent, then you can forget that, Trump said.
At 1155 GMT, BMW shares were down 2 2 percent, while VW and Daimler, Volkswagen were down 2 percent.
Under pressure from his campaign promises to revive US manufacturing employment, Trump turned fire on carmakers that use the Mexican plants at low cost to serve the US market, he also warned against Toyota Japan it could be a big border tax if it builds its Corolla cars for the US market in a planned factory in Mexico.
The three German car manufacturers have invested heavily in Mexico, but also stressed Monday that the manufacturer in the United States.
BMW Executive Peter Schwarzenbauer told reporters the company was holding its intention to invest about $ 1 billion in a new plant in Mexico, which should go into production in 2019 and create at least 1,500 jobs.
President powers are considerable, it may lawfully impose tariffs of up to 15 percent for 150 days Trump is not constrained by Congress, said Simon Evenett, professor of international trade at the University of St. Gallen in Swiss.
Although the object and foreign companies seeking to challenge the legality of tariffs, it will take at least 18 months to get decided business strategies will be disrupted while.
While investing in Mexico, German carmakers have quadrupled the production of light vehicles in the US over the past seven years to 850,000 units, more than half are exported from here, Germany VDA association the auto industry has said.
In the long term, the United States would be shooting themselves in the foot by imposing tariffs or other trade barriers, VDA President Matthias Wissmann said in a statement.
German car manufacturers employ about 33,000 workers in the US and German automotive supplier on 77000 Furthermore, the VDA said.
Speaking in tabloid newspaper Bild, German Economy Minister Sigmar Gabriel said that rather than trying to penalize German car manufacturers, the United States should instead respond by building better cars and more desirable.
Norbert Roettgen, head of the foreign affairs committee of Germany said Berlin needed to take the comments seriously Trump seems to be absolutely focused on the interests and security interests of employment not in the short term it is seeking free trade so much, but for the protection, he told Reuters.
Mercedes-Benz of Daimler and BMW already have major plants in the United States where they build commercial vehicles higher margin Sport SUV for export to Asia and Europe.
About 65 percent of BMW production at its Spartanburg plant in South Carolina is exported overseas BMW builds the X3, X4, X5 and X6 models in the United States.
It is surprising that Trump singles automaker that exports more than US vehicles than any other manufacturer, the ISI Evercore analysts said.
A BMW spokesman said the plant planned in the Mexican central city of San Luis Potosi build the BMW 3 Series 2019, The production for the global market plant would be an addition of three existing series production facilities in Germany and China.
In June last year, BMW broke ground on the plant, pledging to invest $ 2 2 billion in Mexico in 2019 for the annual production of 150,000 cars.
Daimler said it plans to start the assembly of Mercedes-Benz vehicles in 2018 from a plant 1 billion shared with Renault-Nissan in Aguascalientes, Mexico A Daimler spokesman declined to comment on the remarks of Trump.
Last year, the division Audi VW opened a production plant 1 to 3 billion with the 150,000 vehicle production capacity near Puebla, Mexico Audi said it would build electric and gasoline SUV Q5 in Mexico.
Audi VW declined to comment Monday also declined to comment on the remarks of Trump, but noted that it was investing another in his U S factory 900 million in Chattanooga, Tennessee.
Trump called Germany a major automaker, saying Mercedes-Benz cars were a common sight in New York, but said there was not enough reciprocity Germans buying Chevrolets at the same rate, at- he said, calling the business relationship an unfair one-way street.
Chevrolet sales fell sharply in Europe since the parent company General Motors in 2013 said it would drop the Chevrolet brand in Europe by the end of 2015 Since then, GM has focused instead on promoting its brands Opel and Vauxhall.
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