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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.

Trump calls Germans 'very bad,' vows to stop their car sales in US

TAORMINA, Italy -Talks between President Trump and other leaders of the world's rich nations at the G7 summit on Friday were expected to be "robust" and "challenging" after he had lambasted NATO allies and condemned Germans as "very bad" for their trade policies. Trump's confrontational remarks in Brussels, on the eve of the two-day summit in the Mediterranean resort town of Taormina, cast a pall over a meeting at which America's partners had hoped to coax him into softening his stances on trade and climate change. According to German media reports, Trump condemned Germany as "very bad" for its trade policies in a meeting with European Commission President Jean-Claude Juncker, signaling he might take steps to limit sales of German cars in the United States. "The Germans are bad, very bad," he reportedly told Juncker. "Look at the millions of cars that they're selling in the USA. Horrible. We're gonna stop that." White House economic adviser Gary Cohn on Friday confirmed the reports. "He said they're very bad on trade, but he doesn't have a problem with Germany." Cohn said Trump had pointed out during the meeting that his father had German roots in order to underscore the message that he had nothing against the German people. Trump's spokesman Sean Spicer said Trump had "tremendous respect" for Germany and had only complained about unfair trade practices in the meeting. Juncker called the reports in Spiegel Online and Sueddeutsche Zeitung exaggerated. The reports translated "bad" with the German word "boese," which can also mean "evil," leading to confusion when English-language media translated the German reports back into English. "The record has to be set straight," Juncker said, noting that the translation issue had exaggerated the seriousness of what Trump had said. "It's not true that the president took an aggressive approach when it came to the German trade surplus." "He said, like others have, that (the United States) has a problem with the German surplus. So he was not aggressive at all," Juncker added. In January, Trump threatened to slap a 35 percent tax on German auto imports. "If you want to build cars in the world, then I wish you all the best. You can build cars for the United States, but for every car that comes to the USA, you will pay 35 percent tax," he said. "I would tell BMW that if you are building a factory in Mexico and plan to sell cars to the USA, without a 35 percent tax, then you can forget that." Last year, the U.S.

Mercedes confirms first AMG Sport models for Detroit

If you're looking for a sportier Mercedes-Benz but can't quite make the leap to a full-on AMG model, we've got some good news for you: the German automaker is about to expand its performance portfolio with a more accessible AMG Sport range. Set to bridge the gap between a standard Mercedes fitted with an AMG Sports package and a complete AMG performance variant, models in the the new AMG Sport line will feature upgraded engines, suspensions and brakes. They'll even have "all-wheel drive as standard in selected markets" (almost certain to include ours). Affalterbach has confirmed that the first two AMG Sport models will debut at the upcoming Detroit Auto Show in January. Though it's not saying which models will hit the stage, the teaser image above suggests that one of them will be the new MLC crossover coupe (or whatever it'll be called under the new nomenclature), while the other is almost certain to be the new C450 AMG Sport sedan. The launch of the AMG Sport line is part of the brand's effort to double its 2013 sales figures by 2017 to top over 40,000 units per year globally. With the AMG Sport line joining the standard AMG and AMG S models, the sub-brand is considerably expanding its product portfolio to cater to more customers and budgets, and will give Mercedes a vehicle range to challenge Audi S models and the BMW M Performance range. MERCEDES-AMG UPS THE ANTE - Growth strategy aimed at new market segments - Doubling of global sales targeted by 2017 - Premiere of the new AMG Sport models at the North American International Motor Show in Detroit Affalterbach - The sports car and high-performance brand Mercedes-AMG will achieve a new sales record of well over 40,000 units globally this year. Its entry into the compact segment and the broadening of its product range have provided the Affalterbach-based company with access to new customer groups and secured success in established and new markets. New models developed entirely in-house, such as the SLS AMG and, more recently, the Mercedes-AMG GT, consolidate the brand's success story and place it firmly on course for sustained growth. "We are proud of these successes, as they provide the basis for the next stage of our growth strategy, which we are now launching," explains Tobias Moers, Chairman of the Board of Management of Mercedes-AMG GmbH.