Did Tariff Fears Drive BMW To Build A New $1.2 Billion Assembly Plant In Hungary Vs The US?

BMW is investing 1 billion euros ($1.17 billion) in a new assembly plant in Hungary, its first factory in Europe in nearly two decades as the automaker strengthens its European footprint amid growing protectionism.

The plant will produce 150,000 vehicles a year, the Munich-based carmaker said Tuesday in a statement.

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MDarringer - 7/31/2018 9:53:29 AM

-5 Boost

With BMW's product stumbles and soft sales, why do they need another 150K units?

dlin - 7/31/2018 12:16:58 PM

+3 Boost

Course 101. That's what diversification is for.

TomM - 7/31/2018 2:04:33 PM

+6 Boost

I am sure that the cost of producing a car in Hungary is far less than in Germany, Japan, the USA , Canada, England, France, Belgium, Italy - and probably the North Pole too.

Today - transportation is a major cost - and having a number of plants around the world reduces the cost of transporting a vehicle over sea - in addition to being a hedge on Tariffs as well. AS of yet - BMW has not announced plans to reduce production in the USA - which is what matters.

rlbdcky - 7/31/2018 6:20:18 PM

+2 Boost

Direct foreign investment in the US has fallen off a cliff since Trump came into office. It fell by 32% in 2017 alone according to US government figures. Lots of international firms can't stomach their investments being subject to the whims of Trump.

carloslassiter - 7/31/2018 8:50:35 PM

+2 Boost

MHGA.

valhallakey - 8/1/2018 3:25:24 AM

+2 Boost

haha good one Carlos!