[praxis218]

The new import tariffs for all goods from Mexico will be as follows:

• June 10th: 5%
• July: 10%
• August: 15%
• September: 20%
• October: 25%

Are Mexican-made BMWs considered as a good from Mexico?

[bimmer456]

Just saw this news break. May cause G20s sold here to be made in Germany. But G20 production in Mexico will still be sold in other countries.

Their forecasts will need to be revised. Whether the car becomes more expensive remains to be seen but this may help residuals as consumers start to look more at the second hand market.

[Mako]

Originally Posted by praxis218

The new import tariffs for all goods from Mexico will be as follows:

• June 10th: 5%
• July: 10%
• August: 15%
• September: 20%
• October: 25%

Are Mexican-made BMWs considered as a good from Mexico?

5% on ALL goods, so yes, BMW can't eat that, will either jack up price for 2020s or import from Germany again.

[Pauleebe]

If BMW planned to cut costs by producing more US BMW's in Mexico (which, I'm sure it is cheaper), forcing them to use German plants is a cost that will likely be passed to the consumer.

[claykin]

Not only does BMW have an issue related to G20 Mexico production, they have a parts supply chain issue for the Greer, SC factory. BMW has over 100 parts suppliers currently exporting from Mexico. Much of it to the Greer plant.

Several automakers are in the same poopstorm.

[ynguldyn]

SLP is already making cars, but in low volume.

Mexican parts are everywhere. SLP is obviously affected the most, but Spartanburg production will definitely feel it too. If I had to guess, 20-30% of Spartanburg parts by cost could be sourced from Mexico, mostly unsexy stuff like wires and fasteners but also more expensive things like for example headlights. So 1% cost increase of Spartanburg cars for each 5% tariff increase shouldn't be far from the truth.

Here's a really good visualization tool: https://atlas.media.mit.edu/en/visua...mex/show/2017/

As the Mexico/Germany mix starts shifting in favor of SLP, BMW would be able to hold the price increases or offer more free content. Now, with the tariffs in place and the awful current financials limiting their ability to absorb the (hopefully) short term cost increase, the likelihood of that happening is much lower.

[Cammy440iGC]

The US automakers with huge Mexico supply chains along with US Chamber of Commerce are putting on a full court press to stop this as it will have an extremely negative impact in a down year...the steel and aluminum tariffs have already been tough.

And there’s still the threat of a 25% tariff on all German cars.

[dpod25]

My dealer already received their first Mexico-built 330i:
https://www.passportbmw.com/new-Marl...5R1J52K8A04083

[claykin]

I just checked a large dealer near me, and they have 7 SLP 330i.