BMW Pushes Back After Trump Threatens Tariffs on Its Mexico Cars

Melba UnderwoodJan 17, 2017

Following the remarks Trump made in the interview published on Monday shares of BMW were off by 2.2%, while VW as well as Daimler shares were down 2%. In fact, BMW intends to build as many as 150,000 models, including the 3-series. The biggest German auto factory in Mexico is Volkswagen AG's plant in Puebla.

Beyond that, Gabriel recommended more self-confidence in handling Trump.

'The American vehicle industry is getting worse, weaker and more expensive.

He warned that this "would make the U.S. vehicle industry weaker, worse and above all more expensive". He stated: "We're not weak and inferior". "You can build cars for the United States, but for every auto that comes to the U.S., you will pay 35 per cent tax", Trump said in remarks that were translated into German.

When asked what Trump should do to get more Germans buying American cars, his answer was: "Build better cars". The plant in Mexico would be an addition to existing 3 Series production facilities in Germany and China.

"BMW's decision to build a plant in Mexico is strategic; it will supply cars to our markets around the world and will join our BMW Group Global Production Network of 31 plants in 14 countries". According to them, Trump's characterization of vehicle sales as a "one-way street" is all down to American automakers. In a ludicrous logic defying common sense of free market economics, Trump said that while German company made BMW cars are a frequent sight in NY, one doesn't see the reciprocity given to U.S. auto maker Chevrolet in Germany.

Toyota shares dropped more than three percent Friday after US President-elect Donald Trump threatened the carmaker with import taxes over a new vehicle plant in Mexico, also prompting an objection from the Japanese government.

"We export 70 percent of our USA production to 140 markets around the world".

"It is probably the most unusual interview I have ever had", BILD editor Kai Diekmann said of his meeting with the President-elect.

BMW's insistence that it would not need to sell models in the U.S. is highly unusual, with nearly all Mexican plants heavily dependent on United States sales. He suggested that the company should build its plant in America.

Under pressure to deliver on campaign promises to revive U.S. industrial jobs, Trump has turned his fire on carmakers that use low-priced Mexican plants to serve the United States market.

US President-elect Donald Trump will probably do everything possible to Make America Great Again.

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