BMW builds X5 in Thailand to counteract U.S. China tariffs: CEO

Reuters Staff

 

FILE PHOTO

 

FRANKFURT (Reuters) - BMW’s (BMWG.DE) said it is producing between 10,000 and 20,000 X5 sports utility vehicles in Thailand as a way to supply Chinese customers now that imported vehicles from the United States face a 40 percent tariff.

 

In spring 2016, BMW started building the X5 in Thailand and this plant is now capable of making a “significant portion” of the vehicles that would otherwise have been exported from its plant in Spartanburg, South Carolina to China.

 

“This is one action to counteract,” Chief Executive Harald Krueger told analysts in a call to discuss the company’s second-quarter results.

 

(Reporting by Edward Taylor)

 

-- © Copyright Reuters 2018-08-03

If they are build here, then they don't have to import them when you want to buy one, but there will be a trick I assume....

hope that doesn't put Thailand in the cross hairs.... He wasn't too please with Harley D.

27 minutes ago, RotMahKid said:

If they are build here, then they don't have to import them when you want to buy one, but there will be a trick I assume....

Not sure of the tax/import status on CKD build that these will surely be.

28 minutes ago, from the home of CC said:

hope that doesn't put Thailand in the cross hairs.... He wasn't too please with Harley D.

So?  NO choice. Anyhow, this is happening more and more. Companies that produced in the US now move their production outside because otherwise they can't sell. Trump is destroying the US economy. Because of his tax cuts soon the US will have a 1 trillion dolar deficit. Trumpism at its best. Just keep borrowing and give the wealthy a tax cut. A pity only half of the US can see this game. 

Edited August 3, 20187 yr by Nickymaster

36 minutes ago, from the home of CC said:

hope that doesn't put Thailand in the cross hairs.... He wasn't too please with Harley D.

BMW are German, Harley are US , President Trump can impose whatever he likes on BMW, but the end game, he will be penalizing Thailand not Germany nor China , not a good look which ever way you might like to look at it.

47 minutes ago, from the home of CC said:

hope that doesn't put Thailand in the cross hairs.... He wasn't too please with Harley D.

USA rides are put together in LOS so why shouldn't German companies pick what is best for them..To me it looks like job losses in the USA because of Trump stuff...

1 minute ago, transam said:

USA rides are put together in LOS so why shouldn't German companies pick what is best for them..To me it looks like job losses in the USA because of Trump stuff...

I agree, I'm thinking there might be some sort of retribution - and I hope not.

president Trump is just leveling the playing field, The US economy has not been so buoyant for years, Always people only see the downside. Now China can play fair

5 minutes ago, geoinparadise said:

president Trump is just leveling the playing field, The US economy has not been so buoyant for years, Always people only see the downside. Now China can play fair

Maybe your president 

Sooooo no import fees means 40% reduction in price, right?  <deleted>!!!!!

Edited August 4, 20187 yr by metisdead
Profane acronym removed.

trump pulls out of TPP, harley builds plant to service asia.

trump raises tariffs on euro metals, harley moves production to

thailand to service europe.

trump raises more tariffs on europe, bmw and mercedes move their

us production out of the us.

 

now that's winning!

winning so much i can't take it no more!

 

trade wars are fun and easy to win!

winning!  winning!  winning!

 

 

BMW started production in Thailand 2016 which was during Obama’s, which also indicates they started discussing the move years earlier. My guess 2010, funded the plant 2012, started construction 2014 and operational 2016. The members on this forum who fell for the “Trump” story are victims of listening to the “let’s hate trump” I can state that BMW decided to move production under obama either due to the company being Racist hating a black  or due to the massive increase in regulations and operational taxes under Obama. However this was a done deal before Trump.

Will this make it cheaper now its made in Thailand? 

20 hours ago, from the home of CC said:

hope that doesn't put Thailand in the cross hairs.... He wasn't too please with Harley D.

He can't do shit against Thailand. This is just one of many unintended consequences of the self-proclaimed "stabile genius." If one is a student of history he will see that we, America, tried that in 1929 with the Smoot-Hawley tariffs and we all know how that turned out. 

One good thing about USA. When they sell a Vehicle it comes no matter in what country is sold with the engine that made it popular Here in the majorits of cases open a BM or Benz and the V8, or 12 has been stolen and replaced with somethig that cant keep up with a Honda Civic RS.


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20 hours ago, transam said:

USA rides are put together in LOS so why shouldn't German companies pick what is best for them..To me it looks like job losses in the USA because of Trump stuff...

NO. The Harley's made in LOS will be for the Asian and European markets only.

5 minutes ago, HAKAPALITA said:

One good thing about USA. When they sell a Vehicle it comes no matter in what country is sold with the engine that made it popular Here in the majorits of cases open a BM or Benz and the V8, or 12 has been stolen and replaced with somethig that cant keep up with a Honda Civic RS.


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Where is "here"?

1 minute ago, thaigirlwatcher said:

NO. The Harley's made in LOS will be for the Asian and European markets only.

Sorry, I was thinking Chevy....?

20 hours ago, Nickymaster said:

So?  NO choice. Anyhow, this is happening more and more. Companies that produced in the US now move their production outside because otherwise they can't sell. Trump is destroying the US economy. Because of his tax cuts soon the US will have a 1 trillion dolar deficit. Trumpism at its best. Just keep borrowing and give the wealthy a tax cut. A pity only half of the US can see this game. 

China's prosperity was built initially on USA companies shutting down there US plants and moving to China for the cheap labour on offer, that started well over thirty years ago! It's amusing to watch how the haters, rather than face the truth, choose to blame Trump.

Edited August 4, 20187 yr by CGW

16 minutes ago, HAKAPALITA said:

One good thing about USA. When they sell a Vehicle it comes no matter in what country is sold with the engine that made it popular Here in the majorits of cases open a BM or Benz and the V8, or 12 has been stolen and replaced with somethig that cant keep up with a Honda Civic RS.

Probably why there are so few US cars here then? the tax rate on large engines is astronomical here!

2 minutes ago, CGW said:

China's prosperity was built initially on USA companies shutting down there US plants and moving to China for the cheap labour on offer, that started well over thirty years ago! It's amusing to watch how the haters, rather than face the truth, choose to blame Trump.

Most of the West did, that is why China is now a world force, we gave it to them at the expense of our own home grown workforce..

Trump say: America First......

So who the <deleted>... cares about America and what they think.... 

Where is "here"?

Ive just asked someone is this Thailand and suprise suprise it is.[emoji243]


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Probably why there are so few US cars here then? the tax rate on large engines is astronomical here!

Yes that is very true , but haw many trusting people like my US pall whoes not a Car Buff bought a well known Toyota SUV on price alone thinking at such a hi price it was a V8. When he came back he said it clonks . His wife collected it, not many i suppose, but he wasn’t a Happy Yank!.?


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3 hours ago, tomloughney said:

BMW started production in Thailand 2016 which was during Obama’s, which also indicates they started discussing the move years earlier. My guess 2010, funded the plant 2012, started construction 2014 and operational 2016. The members on this forum who fell for the “Trump” story are victims of listening to the “let’s hate trump” I can state that BMW decided to move production under obama either due to the company being Racist hating a black  or due to the massive increase in regulations and operational taxes under Obama. However this was a done deal before Trump.

Exactly, this just another "HD moves production to Thailand after Trump raises tariffs" like article, while all those plans were already in place loooong before Trump became president.

30 minutes ago, CGW said:

China's prosperity was built initially on USA companies shutting down there US plants and moving to China for the cheap labour on offer, that started well over thirty years ago! It's amusing to watch how the haters, rather than face the truth, choose to blame Trump.

Correct, but it is Trump who said he could deal with it.  He has been screaming for years that he would make China and the EU "blink" and that his predecessors have been stupid. But the only way the US can decrease its trade deficit a little with the world is investing in education and better machinery. There is an extreme shortage of qualified labor in the US. But this takes time and politicians only care about the short term. And their mentality has to change. The US is not the best at everything as claimed by Trump.  You only have to look at Trump's ignorant comments about Harley D to understand that.

 

Trump's trade war is also making many enemies around the world.  Many companies and countries prefer not to buy from the US anymore. What would you do if the country you trade with is telling everybody that you are ripping them off and then slaps unilateral tariffs. Of course you are going to look for other countries to buy from and even help them develop certain industries.  That is what China is doing for example with Brazil with soybeans. Great new trade deals are being made and they don't involve the US. Trump is doing some serious damage to the US. 

 

https://www.bloomberg.com/news/articles/2018-08-03/u-s-trade-deficit-widened-in-june-for-first-time-in-four-months

 

 

11 minutes ago, HAKAPALITA said:

Yes that is very true , but haw many trusting people like my US pall whoes not a Car Buff bought a well known Toyota SUV on price alone thinking at such a hi price it was a V8. When he came back he said it clonks . His wife collected it, not many i suppose, but he wasn’t a Happy Yank!.?


Sent from my iPhone using Thailand Forum - Thaivisa mobile app

Sounds like your pal shouldn't be let out on his own....?

15 hours ago, geoinparadise said:

president Trump is just leveling the playing field, The US economy has not been so buoyant for years, Always people only see the downside. Now China can play fair

Not that simple.

 

"The federal budget deficit is ballooning, skyrocketing, soaring, whichever way you want to describe it," said longtime fiscal watchdog Stan Collender, who blogs about federal finances as "The Budget Guy."

"You've got a kind of perfect storm here," Collender said. "You've got more spending. You've got less revenue. And the deficit is just getting bigger and bigger, to the point where it will be at least a trillion dollars every year during the Trump administration and beyond."

 

https://www.npr.org/2018/08/03/635071790/despite-strong-economy-federal-deficit-soars

 

Obama did a good decreasing the deficit and Trump is increasing it at a fast pace. The biggest scam ever. The rich get tax cuts and the country keeps borrowing money because tax collections will be down of course. Trumpism at its best!

 

 

 

Edited August 4, 20187 yr by Nickymaster

1 hour ago, thaigirlwatcher said:

To me it looks like job losses in the USA because of Trump stuff...

 

1 hour ago, thaigirlwatcher said:

NO. The Harley's made in LOS will be for the Asian and European markets only.

 

yes.and.no.

 

yes, the harleys produced here will mostly be sold throughout asia.  if you note the new lineup, they will be producing mainly smaller bikes for the asian market that are not sold in the usa.

 

they could have been produced in the usa, but trump pulled out of the TPP, so import duties to thailand (60%) and to india (100%) and i dunno about the rest of asia, make it impossible to compete with asian production.  us loses manufacturing jobs.  winning!

 

the harleys destined for europa were being produced in the kansas city plant, but trumps trade war has increased tariffs on us vehicles imported into europe.  makes sense to make (assemble from us made parts for now...) those bikes in thailand and ship to europe to avoid trade war tariffs.  result...close the kansas plant, us loses even more jobs.  winning!

 

as to bmw, sure they opened a plant during the reign of he-who-must-not-be-named.  limited production for asian countries with high tariffs.  trumps fun-and-easy-to-win trade war with china has made production in south carolina antieconomical, so they move more production here.  ohmyladygaga!  please stop winning!