BMW downplays fears over U.S. tariffs in Trump election win

FRANKFURT (Reuters) - Potential import tariffs under a possible U.S. presidency of Donald Trump may even benefit BMW (ETR:BMWG ), the German premium carmaker's CEO said on Wednesday, pointing to its strong local footprint that includes its largest plant worldwide.

The group's plant in Spartanburg, South Carolina, produces more than 1,500 vehicles a day, making it BMW's biggest factory worldwide and a main exporter to markets including Germany, China and Britain.

Oliver Zipse, speaking to journalists after presenting third-quarter results, said BMW may even have "more of an advantage" if there were tariffs "because we have a very, very large footprint in the USA".

"In this respect, we shouldn't be too nervous about what might happen," Zipse said, adding BMW was present at 30 locations across 12 U.S. states.

He said that two-thirds of BMW's vehicle sales in the U.S. were produced in Spartanburg, adding BMW was committed to investing further in the site with its more than 11,000 employees.

In the first nine months of 2024, BMW's deliveries in the United States were down 2.1% at 271,399 vehicles.



The Spartanburg plant alone produced 410,793 vehicles in 2023, of which more than half were exported to 120 countries worldwide, leaving ample room for BMW to sell more locally should tariffs be slapped on vehicle imports.

"There's some natural cover-up against possible tariffs," Zipse said.

Source: Investing.com