E90Post
 


 
BMW 3-Series (E90 E92) Forum > BIMMERPOST Universal Forums > General BMW News and Cars Discussion > BMW to Raise Prices on US Made Models Exported to China



Reply
 
Thread Tools Search this Thread
      07-06-2018, 09:07 AM   #1
Jason
Administrator
Jason's Avatar
United_States
40291
Rep
21,232
Posts

Drives: F80 M3
Join Date: Mar 2005
Location: USA

iTrader: (0)

BMW to Raise Prices on US Made Models Exported to China

BIMMERPOST NEWS
BMW to Raise Prices on US Made Models Exported to China
65
COMMENTS

DETROIT, July 6 (Reuters) - German luxury automaker BMW said on Friday that it will be unable to "completely absorb" a new Chinese 25 percent tariff on imported U.S.-made models and will have to raise prices on the vehicles it makes in Spartanburg, South Carolina.

BMW said in a statement it is "currently calculating related necessary pricing increases" for U.S.-made models imported into China and will announce them "at a later stage."

BMW exports high-margin X4, X5 and X6 SUV and crossover models to China. Last year, the automaker shipped more than 100,000 vehicles from the United States to China.

China, which just days ago cut tariffs on all imported automobiles, slapped an additional 25 percent levy on 545 American products, including U.S.-made cars, beginning on Friday.

The move came in response to the Trump's administration tariffs on $34 billion of Chinese imports.

This poses a tough choice for automakers: absorb the cost of tariffs and take a hit to profit margins, or hike prices and possibly lose sales.

Ford Motor Co said on Thursday that for now it will not hike prices of imported Ford and higher-margin luxury Lincoln models in China, thus absorbing the additional cost of the tariffs.

German automaker Daimler AG said last month that its 2018 pre-tax profits would fall versus last year because new import tariffs on cars exported from the United States to China would hurt sales of high-margin Mercedes-Benz sports utility vehicles.

__________________
Check on the Latest BMW News
Become a fan of Bimmerpost Facebook
Follow us on Bimmerpost Twitter
Subscribe to Bimmerpost Youtube Channel
Appreciate 1
420Coupe222.50
      07-06-2018, 10:08 AM   #2
evanevery
Lieutenant Colonel
evanevery's Avatar
1111
Rep
1,904
Posts

Drives: iXM60, i8 Rdstr, M4, i7 M70
Join Date: Feb 2012
Location: Wisconsin

iTrader: (0)

Make America Stupid Again...
Appreciate 20
tonymac1459.00
M2COMP494.50
alex23642846.50
shil31.50
raysspl991.50
Red Bread4462.00
Ghibli0.00
drexplode1760.50
6ixSpd5996.50
deemo3191740.50
Remonster821.00
chris7197271.50
pz6193274.00
Timujin351.50
aozer994.50
      07-06-2018, 10:12 AM   #3
M2COMP
Captain
United_States
495
Rep
618
Posts

Drives: 2011 X5, 2013 550xi, M2C
Join Date: Jan 2011
Location: Southeast

iTrader: (0)

Quote:
Originally Posted by evanevery View Post
Make America Stupid Again...
Absolutely
Appreciate 1
Timujin351.50
      07-06-2018, 10:33 AM   #4
ASAP
Major General
ASAP's Avatar
10048
Rep
8,560
Posts

Drives: '23 X3 M40i
Join Date: Sep 2012
Location: FL

iTrader: (0)

I have a tough time understanding this article... the price of US made BMWs going to China will increase? Lol that sounds like a serious hit to China / BMW more so than the USA. BMWs profits as a corporation do not remain in the USA and with the growing economy in China; this hurts BMW and China more so than in any way the US. We are still the largest market for cars coming out of that plant if I am not mistaken... don't worry about the jobs. this would be how a trade war works.
Appreciate 1
hoyasaxa685.00
      07-06-2018, 10:40 AM   #5
ORIGIN M.
Banned
3160
Rep
9,134
Posts

Drives: ///M
Join Date: Oct 2007
Location: Northern Hemisphere

iTrader: (0)

Quote:
Originally Posted by evanevery View Post
Make America Stupid Again...
All Business, No Bullshit !
Appreciate 3
paul223410.00
Yeineken1297.50
      07-06-2018, 10:40 AM   #6
raysspl
Brigadier General
raysspl's Avatar
992
Rep
3,001
Posts

Drives: walking, bicycle, & bus
Join Date: Jan 2015
Location: SoCal

iTrader: (0)

Consumers pay for any tariffs & retaliatory tariffs thereafter.
M.A.S.A. indeed...
__________________
re
Appreciate 2
6ixSpd5996.50
Remonster821.00
      07-06-2018, 10:43 AM   #7
Ricfutures
Captain
Ricfutures's Avatar
United_States
150
Rep
659
Posts

Drives: E90 M3
Join Date: Oct 2009
Location: Seattle

iTrader: (0)

Quote:
Originally Posted by ASAP View Post
I have a tough time understanding this article... the price of US made BMWs going to China will increase? Lol that sounds like a serious hit to China / BMW more so than the USA. BMWs profits as a corporation do not remain in the USA and with the growing economy in China; this hurts BMW and China more so than in any way the US. We are still the largest market for cars coming out of that plant if I am not mistaken... don't worry about the jobs. this would be how a trade war works.
Cliff notes version: Increased pricing will most likely lead to lower demand. Lower demand = less production = less workers. Net/net this is a loss for BMW and US, specifically the people employed in these US plants.
__________________
F97 X3M
F80 M3 (Sold)
E90 M3 (Sold)
EB M235i (Sold)
E92 M3 (Sold)
Appreciate 14
Hedoniste3770.50
drexplode1760.50
6ixSpd5996.50
wdeerfield2743.50
Law6377.00
Remonster821.00
rich8566608.50
t61212.00
Timujin351.50
seis-speed2426.00
      07-06-2018, 10:47 AM   #8
ASAP
Major General
ASAP's Avatar
10048
Rep
8,560
Posts

Drives: '23 X3 M40i
Join Date: Sep 2012
Location: FL

iTrader: (0)

Quote:
Originally Posted by Ricfutures View Post
Quote:
Originally Posted by ASAP View Post
I have a tough time understanding this article... the price of US made BMWs going to China will increase? Lol that sounds like a serious hit to China / BMW more so than the USA. BMWs profits as a corporation do not remain in the USA and with the growing economy in China; this hurts BMW and China more so than in any way the US. We are still the largest market for cars coming out of that plant if I am not mistaken... don't worry about the jobs. this would be how a trade war works.
Cliff notes version: Increased pricing will most likely lead to lower demand. Lower demand = less production = less workers. Net/net this is a loss for BMW and US, specifically the people employed in these US plants.
The US is the largest market by a mile of crossovers and suv's... and with China's recent money; i simply dont see such a demand drop as people might be going on and on about.
__________________
2 x N54 -> 1 x N55 -> 1 x S55-> 1 x B58
Appreciate 0
      07-06-2018, 10:56 AM   #9
mbchris
First Lieutenant
363
Rep
316
Posts

Drives: Volvo S90
Join Date: Apr 2018
Location: Dallas TX

iTrader: (0)

Quote:
Originally Posted by Ricfutures View Post
Quote:
Originally Posted by ASAP View Post
I have a tough time understanding this article... the price of US made BMWs going to China will increase? Lol that sounds like a serious hit to China / BMW more so than the USA. BMWs profits as a corporation do not remain in the USA and with the growing economy in China; this hurts BMW and China more so than in any way the US. We are still the largest market for cars coming out of that plant if I am not mistaken... don't worry about the jobs. this would be how a trade war works.
Cliff notes version: Increased pricing will most likely lead to lower demand. Lower demand = less production = less workers. Net/net this is a loss for BMW and US, specifically the people employed in these US plants.
Quote:
Originally Posted by Ricfutures View Post
Quote:
Originally Posted by ASAP View Post
I have a tough time understanding this article... the price of US made BMWs going to China will increase? Lol that sounds like a serious hit to China / BMW more so than the USA. BMWs profits as a corporation do not remain in the USA and with the growing economy in China; this hurts BMW and China more so than in any way the US. We are still the largest market for cars coming out of that plant if I am not mistaken... don't worry about the jobs. this would be how a trade war works.
Cliff notes version: Increased pricing will most likely lead to lower demand. Lower demand = less production = less workers. Net/net this is a loss for BMW and US, specifically the people employed in these US plants.
You really think so? Are you thinking short or long term?

Once there is some pain, all parities will come back to the table. Negotiate. Then things will normalize again. Some products will gain. Others will lose. Same for countries. The question is, who has more to lose? They may end up in a worse deal.
Appreciate 2
      07-06-2018, 10:57 AM   #10
Ricfutures
Captain
Ricfutures's Avatar
United_States
150
Rep
659
Posts

Drives: E90 M3
Join Date: Oct 2009
Location: Seattle

iTrader: (0)

Quote:
Originally Posted by ASAP View Post
Quote:
Originally Posted by Ricfutures View Post
Quote:
Originally Posted by ASAP View Post
I have a tough time understanding this article... the price of US made BMWs going to China will increase? Lol that sounds like a serious hit to China / BMW more so than the USA. BMWs profits as a corporation do not remain in the USA and with the growing economy in China; this hurts BMW and China more so than in any way the US. We are still the largest market for cars coming out of that plant if I am not mistaken... don't worry about the jobs. this would be how a trade war works.
Cliff notes version: Increased pricing will most likely lead to lower demand. Lower demand = less production = less workers. Net/net this is a loss for BMW and US, specifically the people employed in these US plants.
The US is the largest market by a mile of crossovers and suv's... and with China's recent money; i simply dont see such a demand drop as people might be going on and on about.
This makes sense if there are no other options for the Chinese but every other luxury car manufacturer who isn't producing/shipping cars from the US will have better pricing than BMW. I don't think Audi, Mercedes, etc... are going to raise their prices as well.

This distributive form of negotiation works great when there's only 2 parties splitting up the pie. Unfortunately this is a much more complex situation where the Chinese will have similar alternatives that will cost less.
__________________
F97 X3M
F80 M3 (Sold)
E90 M3 (Sold)
EB M235i (Sold)
E92 M3 (Sold)
Appreciate 3
      07-06-2018, 10:57 AM   #11
blue dragon
Lieutenant Colonel
1189
Rep
1,544
Posts

Drives: '22 Tesla MY + '23 Tesla MY
Join Date: Jul 2010
Location: Land of high taxes and crappy healthcare

iTrader: (2)

Quote:
Originally Posted by ASAP View Post
Quote:
Originally Posted by Ricfutures View Post
Quote:
Originally Posted by ASAP View Post
I have a tough time understanding this article... the price of US made BMWs going to China will increase? Lol that sounds like a serious hit to China / BMW more so than the USA. BMWs profits as a corporation do not remain in the USA and with the growing economy in China; this hurts BMW and China more so than in any way the US. We are still the largest market for cars coming out of that plant if I am not mistaken... don't worry about the jobs. this would be how a trade war works.
Cliff notes version: Increased pricing will most likely lead to lower demand. Lower demand = less production = less workers. Net/net this is a loss for BMW and US, specifically the people employed in these US plants.
The US is the largest market by a mile of crossovers and suv's... and with China's recent money; i simply dont see such a demand drop as people might be going on and on about.
Quote:
Originally Posted by ASAP View Post
The US is the largest market by a mile of crossovers and suv's... and with China's recent money; i simply dont see such a demand drop as people might be going on and on about.
Right, because increasing the price of any automobile product never has an effect on demand......
__________________
| '22 Tesla Model Y P - My daily | '23 Tesla Model Y LR - Wife's daily | '17 F15 35D - missed daily |
Appreciate 0
      07-06-2018, 10:59 AM   #12
SeanWRT
Colonel
SeanWRT's Avatar
3179
Rep
2,577
Posts

Drives: E90 M3 & F87 M2
Join Date: Sep 2015
Location: Shanghai

iTrader: (1)

Quote:
Originally Posted by ASAP View Post
I have a tough time understanding this article... the price of US made BMWs going to China will increase? Lol that sounds like a serious hit to China / BMW more so than the USA. BMWs profits as a corporation do not remain in the USA and with the growing economy in China; this hurts BMW and China more so than in any way the US. We are still the largest market for cars coming out of that plant if I am not mistaken... don't worry about the jobs. this would be how a trade war works.
China doesn't do this to get itself hurt. BMW maybe.

Logic is simple - Consumers can buy Euro made cars, not necessarily BMW. America will lose GDP due to the loss of sales. Not that USA cares btw.

We feel nothing. We're already accustomed to tariff. That's why M4 base costs 160K USD here after tax. And M4 is pretty pedestrian these days.

And X5M/X6M is a 400K USD tag price (after tax) car here. How about that?
__________________
Lemania 2320
Appreciate 0
      07-06-2018, 11:19 AM   #13
TonkaM6
Enlisted Member
TonkaM6's Avatar
United Kingdom
26
Rep
47
Posts

Drives: 2018 M6 Convertible LCI
Join Date: Jul 2012
Location: Rhoose Point

iTrader: (0)

Garage List
Quote:
Originally Posted by evanevery View Post
Make America Stupid Again...
What do you mean “again”
Appreciate 0
      07-06-2018, 11:27 AM   #14
bimmer456
Major General
2938
Rep
5,983
Posts

Drives: 340i
Join Date: Nov 2016
Location: Pasadena, CA

iTrader: (0)

How many SAVs are the Chinese buying? They may not be as price sensitive if there is significant brand loyalty. Buick's have been overpriced in China for years yet demand keeps increasing. BMW may start making some SAVs oversees but the US is still the largest market for these vehicles and won't be affected by tariffs.
Appreciate 0
      07-06-2018, 11:42 AM   #15
Red Bread
Major General
United_States
4462
Rep
9,160
Posts

Drives: Smog machines
Join Date: Oct 2008
Location: Austin, TX

iTrader: (0)

Quote:
Originally Posted by bimmer456 View Post
How many SAVs are the Chinese buying? They may not be as price sensitive if there is significant brand loyalty. Buick's have been overpriced in China for years yet demand keeps increasing. BMW may start making some SAVs oversees but the US is still the largest market for these vehicles and won't be affected by tariffs.
Last year's sales were 537k BMW's in China, compared to 307k in the US. I didn't find a breakout by model, but it looks like the X3 was the second best seller. However it also looks like BMW is starting X3 production in China this year.
Appreciate 0
      07-06-2018, 11:53 AM   #16
Penguino
Lieutenant Colonel
Penguino's Avatar
1604
Rep
1,604
Posts

Drives: A car.
Join Date: Dec 2009
Location: Here

iTrader: (5)

Quote:
Originally Posted by ASAP View Post
I have a tough time understanding this article... the price of US made BMWs going to China will increase? Lol that sounds like a serious hit to China / BMW more so than the USA. BMWs profits as a corporation do not remain in the USA and with the growing economy in China; this hurts BMW and China more so than in any way the US. We are still the largest market for cars coming out of that plant if I am not mistaken... don't worry about the jobs. this would be how a trade war works.
Until BMW decides to cut operations in Spartanburg, layoffs and open a factory in China.
__________________
"Beware of false knowledge; it is more dangerous than ignorance."
Appreciate 3
      07-06-2018, 11:55 AM   #17
jondaman
First Lieutenant
jondaman's Avatar
United_States
158
Rep
397
Posts

Drives: 2013 328i
Join Date: Feb 2013
Location: Arizona, USA

iTrader: (0)

Quote:
Originally Posted by ASAP View Post
I have a tough time understanding this article... the price of US made BMWs going to China will increase? Lol that sounds like a serious hit to China / BMW more so than the USA. BMWs profits as a corporation do not remain in the USA and with the growing economy in China; this hurts BMW and China more so than in any way the US. We are still the largest market for cars coming out of that plant if I am not mistaken... don't worry about the jobs. this would be how a trade war works.
What do you think the response is if demand of X4/5/6 was lowered in the world biggest automotive market? BMW cuts German workers?
Think.
__________________

Past: E46 Metallic Blue Coupe 323i GONE: E86 Jet Black Z4 Convertible GONE: E92 Crimson Red 335i,
F30 Liquid Blue Matallic 328i
Current Garage Queen: Mineral White F83 M4
Appreciate 2
      07-06-2018, 12:01 PM   #18
Red Bread
Major General
United_States
4462
Rep
9,160
Posts

Drives: Smog machines
Join Date: Oct 2008
Location: Austin, TX

iTrader: (0)

Quote:
Originally Posted by Penguino View Post
Quote:
Originally Posted by ASAP View Post
I have a tough time understanding this article... the price of US made BMWs going to China will increase? Lol that sounds like a serious hit to China / BMW more so than the USA. BMWs profits as a corporation do not remain in the USA and with the growing economy in China; this hurts BMW and China more so than in any way the US. We are still the largest market for cars coming out of that plant if I am not mistaken... don't worry about the jobs. this would be how a trade war works.
Until BMW decides to cut operations in Spartanburg, layoffs and open a factory in China.
https://www.bmwblog.com/2018/03/21/b...off-this-year/
Appreciate 0
      07-06-2018, 12:04 PM   #19
jondaman
First Lieutenant
jondaman's Avatar
United_States
158
Rep
397
Posts

Drives: 2013 328i
Join Date: Feb 2013
Location: Arizona, USA

iTrader: (0)

Quote:
Originally Posted by bimmer456 View Post
How many SAVs are the Chinese buying? They may not be as price sensitive if there is significant brand loyalty. Buick's have been overpriced in China for years yet demand keeps increasing. BMW may start making some SAVs oversees but the US is still the largest market for these vehicles and won't be affected by tariffs.
Chinese market is adopting to the trend of SUV and SAVs much faster than you think. Partially due to the increased efficiency of SUVs and some roads not being as smooth as the US and Germany.
Many of the New comers to the EV market targets releasing SUV before a sedan just give you an idea.

The notion that US is the only important SUV market will be short lived. I was in China two months ago, basically the highways are 50% SUV already. In the urban areas, there were more cars. Trump's Strategy of bully and negotion may work towards smaller economies. For China, both side will be hurt, badly.

And if BMW is going to cut jobs due to his policy in Spartanburg, who do you think the voters will turn on? Many Trump supports are blue colar manufacturing workers.

Meanwhile, Xi sits on his emperor throne and decide to rule as long as he wishes.
I don't see Trump winning this in the long term.
__________________

Past: E46 Metallic Blue Coupe 323i GONE: E86 Jet Black Z4 Convertible GONE: E92 Crimson Red 335i,
F30 Liquid Blue Matallic 328i
Current Garage Queen: Mineral White F83 M4
Appreciate 3
t61212.00
      07-06-2018, 12:04 PM   #20
ND40oz
Major
ND40oz's Avatar
397
Rep
1,342
Posts

Drives: M2 CS
Join Date: Dec 2009
Location: Denver/Frankfurt

iTrader: (0)

Quote:
Originally Posted by Red Bread View Post
Last year's sales were 537k BMW's in China, compared to 307k in the US. I didn't find a breakout by model, but it looks like the X3 was the second best seller. However it also looks like BMW is starting X3 production in China this year.
It appears that 385k of the BMWs sold in China were locally produced BMW-Brilliance models with the big sellers being the 3 Series L with 124k, 120k of the 5 Series L and 90k X1 L's.

http://carsalesbase.com/china-car-sales-data/bmw/

Looks like the "partnership" between BMW and Brilliance is working out well for China.
__________________
21 BMW X5 xDrive40i
20 BMW M2 CS
19 Mini Cooper S Countryman ALL4 6MT
Appreciate 2
jondaman157.50
Red Bread4462.00
      07-06-2018, 01:17 PM   #21
Germanauto
Major General
Germanauto's Avatar
United_States
9666
Rep
6,075
Posts

Drives: Alfa Romeo Giulia, Rosso
Join Date: Jul 2016
Location: LA

iTrader: (0)

I see the haters have arrived.
Appreciate 2
lab_rat394.50
Yeineken1297.50
      07-06-2018, 01:45 PM   #22
Zulu Saffa
Second Lieutenant
Zulu Saffa's Avatar
299
Rep
246
Posts

Drives: Them Wild
Join Date: Feb 2011
Location: Austin, TX

iTrader: (2)

Originally Posted by Penguino View Post
Quote:
Originally Posted by ASAP View Post
I have a tough time understanding this article... the price of US made BMWs going to China will increase? Lol that sounds like a serious hit to China / BMW more so than the USA. BMWs profits as a corporation do not remain in the USA and with the growing economy in China; this hurts BMW and China more so than in any way the US. We are still the largest market for cars coming out of that plant if I am not mistaken... don't worry about the jobs. this would be how a trade war works.
Until BMW decides to cut operations in Spartanburg, layoffs and open a factory in China.

Quote:
Originally Posted by Red Bread View Post
^These two^

BMW (and other companies) are not going to sit around with their dicks in their hands and let childish demigods play with their profits and future. This, and the roll on effects are basic business economics.
Appreciate 0
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 04:37 AM.




e90post
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST