In the face of various pressures brought by trade protection and the political environment, BMW made a final preparation for the expansion of the European market by the establishment of a factory in Hungary, and said "goodbye" to the US market.
On July 31, BMW Motors decided to add a new factory based on the original 17 assembly plants in Europe. It is understood that this plant, which is about to invest 1 billion euros ($1.17 billion) in Hungary, broke the BMW II. It has been quiet for ten years and became the first factory established in Europe after 2000.
In the past month, BMW has been particularly busy. In addition to the construction of the plant in Hungary, BMW also decided to expand its production capacity at two Brilliance plants in China, increasing production scale. On the other hand, just for BMW and the Great Wall. 4. Cooperation will be achieved and BMW will also add a complete vehicle manufacturing plant in China.
What is the reason why BMW has been moving frequently? In the outside world, BMW, which currently has a number of factories in Europe, is not the best choice in the German town of Debrecen. After all, the cost in all aspects of Europe is high. It seems that building a factory at this time is not 'cost-effective'.
However, in BMW's planning, Hungary's construction of a new factory is not only a plant and an increase in production capacity of 150,000 units. It means that BMW has officially begun to further increase the European layout on the basis of securing the European market, and to make BMW withdraw from the US market in the future. Good preparation.
The United States has provoked trade disputes and has become the biggest hot topic in the world at present. In the era of economic globalization, no 'war' can be quickly subsided, and no country can be immune to it. The automobile industry as a global economy The important pillars are the first to bear the brunt of this trade turmoil, and national car companies will also make various countermeasures in the US market, the initiator of this 'war'.
BMW is one of the world's largest luxury car manufacturers, facing various pressures from trade protection and political environment. It is also preparing for the final situation in a variety of ways, saying “goodbye” to the US market. .
Previously, the tariff rate for China's imports of cars from the United States will increase to 40%. BMW has increased the manufacturer's guidance price for X5 and X6 imported from the US to China, with a growth rate of 4%-7%. But from the perspective of BMW. The increase in price does not completely offset the cost of the increase in tariffs.
At present, it is only a trade war that the United States has provoked to China. In the future, the United States will also raise tariffs to more countries. This will inevitably cause certain difficulties for automakers who have production plants in the United States. For BMW, The Mexican factory for the US market will also be hit by tariffs.
Although the United States has not raised tariffs at this time, many automakers, including BMW, have made it clear that: If tariffs rise, companies will move out of the US. In addition, there are related reports that Trump is currently drafting a ban on BMW imports. The plan to the United States, if all is true, will mean that BMW completely loses this market.
As one of the world's important auto markets, the lack of US business represents a reduction in BMW's overall territory. Under this grim form, BMW is the first to choose to expand the European manufacturing landscape. The establishment of the Hungarian factory is an important step.
In addition to responding to changes in the territory of the United States, another reason for BMW to build a factory in Hungary is to strengthen Europe's sustainable development and consolidate its position in the market.
According to relevant data, BMW sold more than 1.1 million vehicles in Europe in 2017, accounting for 45% of its global sales. In the first half of this year, BMW delivered 560,000 vehicles in the European market, up 1.2% year-on-year.
In the future, with the continuous increase in sales in the European market, the establishment of new factories is imperative. In addition, BMW has invested heavily in China, the United States, etc. Now investing in Europe can provide BMW with At least 150,000 vehicles can also maintain production balance between Asia, America and Europe.
Although BMW has not disclosed which models will be produced in the Hungarian factory, according to the head of BMW's production department, the future Hungarian plant will produce fuel and electric vehicles on the same production line, and will support BMW's new energy vehicle development strategy in the future. .