BMW believes that even in case of tariffs hike from newly-elected US President Donald Trump the company is well positioned to not be impacted and may even thrive, according to its CEO Oliver Zipse.
Zipse was speaking to journalists presenting the car maker’s bleak third-quarter results. He pointed at BMW’s strong presence in the US, where its biggest plant is located.
The company’s plant in Spartanburg, South Carolina produced 410.793 vehicles in 2023 and has more than 11,000 employees. The plant is responsible for two-thirds of BMW’s sales in the US. BMW was already committed to invest more in the plant.
According to Zipse, the position of the company in the US, with more than 30 locations across 12 states, makes possible tariff hikes “more of an advantage” compared to its rivals, as “there’s some natural cover-up against possible tariffs.”
Zipse’s optimistic take came on a difficult morning for German car makers. News of the US elections plummeted shares of all German car makers, including BMW, between 4.6% and 6.4%. The whole sector had the worst decline across Europe, amid fears of a new trade war between the US and the EU.
Overall, BMW had an underwhelming third-quarter, with sales in the US down 2.1% during the first nine months of 2024. The US market is responsible for around 12.9% of German car exports, making it the biggest export market for German car makers.
