BMW said it will raise the prices of SUVs manufactured in the US to absorb the latest tariffs
On top of the price hike, BMW has decided to shift the production of some of its SUV models from the US to China due to the hike in tariffs. The automaker and its Chinese partner Brilliance Automotive Group have agreed to increase the vehicle production in the nation with an aim to reach 520,000 units by next year. The agreement hints at more investment and growth in China by the automaker including the development of electric vehicles.
Related: Trade war forces Harley Davidson to shift production from the US
BMW is the largest auto exporter in the US and the company has 10,000 workers in its South Carolina plant where it manufactures many of its SUV models. The trade war is leading to automotive companies shifting production from the US and increasing prices for their products. Tesla (TSLA) increased the prices on some of its models by 20% this week.
This does not bode well for the US as the rising costs could hurt the car companies’ expansion and growth plans. The costs include the prices of components too which are also impacted by the trade war as some of these come from other countries. A timely resolution to the trade issues appears to be the need of the hour.