In response to a newly imposed 25% tariff on autos imported from Mexico, BMW North America has introduced their sellers that there’s a value safety deliberate for Mexico-produced fashions. In keeping with a supplier bulletin, autos such because the BMW M2, 2 Sequence, and three Sequence with a scheduled manufacturing date earlier than Might 1, 2025, will likely be price-protected, shielding sellers and prospects from quick value hikes.
Nonetheless, beginning Might 1, 2025, any Mexico-produced BMW fashions arriving within the U.S. might face a brand new whole import responsibility of 27.5%, up from the earlier 2.5% tariff, for the reason that Mexico tariffs began on March 4th. However for now, BMW is just not committing to a plan publish Might 1st. Clearly, this improvement stems from an aggressive commerce coverage transfer by the U.S. authorities, aiming to cut back reliance on international manufacturing and convey extra manufacturing again to home amenities.
We reached out to BMW of North America and obtained the next assertion: “What this implies by “value safety” is that we’re not rising costs for March or April. Nothing will change for March or April,” a BMW spokesperson instructed us. “Nonetheless, if the tariff scenario stays because it at present is, we could have to reassess after that point.”
BMW Faces Challenges With M2 and a couple of Sequence Manufacturing
For BMW, the brand new tariffs pose a major problem, notably for the M2 (G87) and 2 Sequence Coupe (G42). These fashions are solely manufactured at BMW’s San Luis Potosí plant in Mexico, that means BMW has no different manufacturing crops for these vehicles. With no quick answer out there, U.S. prospects might see value will increase on these enthusiast-focused fashions except BMW absorbs the prices—an unlikely long-term answer.
The three Sequence Presents Some Flexibility
The BMW 3 Sequence (G20 LCI), whereas additionally produced in Mexico, has a second manufacturing website at BMW’s Munich plant in Germany. This provides BMW a potential workaround, however that is pure hypothesis since BMW gained’t formally touch upon these plans.
- The corporate might shift extra U.S.-bound 3 Sequence manufacturing to Munich to keep away from the brand new tariffs.
- Alternatively, BMW might redirect Mexico-built 3 Sequence to Europe whereas allocating German-built 3 Sequence for the U.S. market.
This technique, nonetheless, is dependent upon Munich’s manufacturing capability and whether or not BMW is keen to regulate its world logistics to counteract the tariff influence.
Potential Business-Broad Influence
BMW is just not the one automaker affected by these tariffs. Manufacturers with important Mexican manufacturing footprints, together with Volkswagen, Honda, and Toyota, at the moment are dealing with rising prices and provide chain disruptions. Many automakers will likely be compelled to resolve whether or not to go on the added prices to customers, shift manufacturing, or negotiate exemptions.
Whereas BMW NA’s value safety plan affords a short lived buffer for sellers and patrons, the long-term technique stays unsure. Will BMW discover a technique to shift manufacturing, or will fans be compelled to pay considerably extra for fashions just like the M2 and a couple of Sequence? The approaching months will likely be important as BMW evaluates its choices in response to this dramatic coverage shift. A coverage that additionally appears to vary by the week.
