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How tariffs in China could cause a meltdown in the American South

While BMW is clearly a German company, the crossovers that are exceedingly important to it are actually made in Spartanburg, South Carolina. And more than that, the Spartanburg plant (physically located in the town of Greer) is where the corporate know-how and capability for those vehicles is concentrated. These are the vehicles – specifically, the BMW X3, X4, X5, X6, X7 – that drove record growth for the company in 2018, according to BMW. But whatÂ’s most notable about BMW Group Plant Spartanburg, given current events, is that according to the U.S. Department of Commerce it was the largest automotive exporter by value for the fifth year running in 2018. ThatÂ’s worth emphasizing: largest automotive exporter by value. Not GM. Not Ford. BMW. And where might one assume that more than a few of those X vehicles are shipped to? China. Some 360 miles southwest of Spartanburg is Mercedes-Benz U.S. International, Inc., in in Tuscaloosa County, Alabama. It started building vehicles in 1997. Since then, Daimler AG has invested in excess of $5.5 billion in the facility. It manufactures the crossover now known as the GLE, formerly the ML-Class. It also makes the GLE coupe and GLS. Daimler describes the Tuscaloosa facility as “the traditional home of SUV production” for those vehicles. When it reported its global 2018 sales, Daimler noted that on a global basis SUVs account “for more than a third of all Mercedes-Benz sales.” According to the Chinese finance ministry, on December 15th the Chinese government will impose a 25% tariff on automobiles (and a 5% tariff on auto parts) from the U.S. Certainly this is going to have a direct effect on the sales of vehicles that are manufactured in the U.S. and exported to China. BMW and Mercedes are going to take it on the chin for the vehicles that they make in plants that they invested in so heavily in the U.S. Which could potentially mean that people in places like Greer, South Carolina, and Vance, Alabama, are going to find themselves in the crosshairs of the combatants. Soo too could Lincoln, which produces vehicles in places like Louisville, Kentucky (Navigator), Chicago, Illinois (Aviator) and Flat Rock, Michigan (Continental). Although the Tesla Gigafactory 3 is rapidly nearing completion in Shanghai, it is worth noting that vehicles built in Fremont, California, are being sold in China in numbers that donÂ’t make Musk unhappy.

Not just 'our logo on a sail': Automakers gain technology from America's Cup

HAMILTON, Bermuda - From water taxis that "fly" on hydrofoils to aircraft wings and cutting-edge car steering wheels, the America's Cup has produced technology with potential far beyond its "foiling" catamarans. With their focus on carbon fiber and aerodynamics, the teams that fought for the America's Cup attracted partners including planemaker Airbus and automotive groups BMW and Land Rover, who were keen to learn from them. One area where this is likely to have an impact is in harnessing "foiling" technology, where the America's Cup boats "fly" above the water on foils, cutting water resistance. "Foiling in small electric boats will most likely appear on rivers in major cities. We are just at the beginning of the foiling adventure," Pierre Marie Belleau, head of Airbus Business Development, who managed its partnership with Larry Ellison's Oracle Team USA, told Reuters. The space-age catamarans used in the 35th America's Cup, which ended in victory for Emirates Team New Zealand this week, can sail at maximum speeds of 50 knots (57 mph) and have more in common with flying than sailing."CARBON FIBER RELATIONSHIP" For Jaguar Land Rover, which sponsored British sailor Ben Ainslie's attempt to win the cup, the relationship is a strategic one with a focus on technology and innovation. "We don't just get our logo onto a sail," Mark Cameron, JLR's Experiential Marketing Director, said by telephone, adding that the carmaker would be providing more designers to help Land Rover BAR with technology for their next campaign. "This is a dynamic sport that is developing fast. ... It's moving quickly just like the car industry is moving quickly. It's all changing," Land Rover produced a special steering wheel for Ainslie to use in the America's Cup, with in-built gear shift paddles that allowed him to adjust the catamaran's "flight" levels. The relationship is similar between BMW and Oracle Team USA, with the German automaker focused on areas including the electronics in the wheel used by skipper Jimmy Spithill, the development of carbon fiber used to make the boat and its components, and the aerodynamic testing. "We like to think of ourselves more as a partner than a sponsor. We have a very strong carbon fiber relationship," Ian Robertson, who is the BMW management board member responsible for sales and brand, told Reuters between races. "This is a dynamic sport that is developing fast. ... It's moving quickly just like the car industry is moving quickly.

Meet the inventor of the BMW 3 Series wagon

It's hard to imagine, but once upon a time, there were only two BMW 3 Series variants: the coupe and sedan. Back before gran coupes, convertibles and yes, even touring models were available, buyers could only get their 3 Series fix if it came with two or four doors and a fixed roof. Back in the mid '80s, BMW engineer Max Reisbock was having some trouble fitting his whole family into his four door. Rather than suck it up and buy a van, he picked up a wrecked 3 Series and got to cutting in a buddy's garage. Months later, he had the very first 3 Series Touring ever built.
At first, he kept the the car to himself, using it to haul friends and family around, but he eventually showed it off to his friends at work. When the BMW executives found out about his project, they called him up to take a closer look. After putting an eyeball on the car, they took it, copied his design, made a few tweaks and quickly rolled out the first production 3 Series Touring. How's that for validation? Check out the video below for Reisbock's story.