In response to a newly imposed 25% tariff on automobiles imported from Mexico, BMW North America has introduced their sellers that there’s a worth safety deliberate for Mexico-produced fashions. In line with a supplier bulletin, automobiles such because the BMW M2, 2 Sequence, and three Sequence with a scheduled manufacturing date earlier than Might 1, 2025, will probably be price-protected, shielding sellers and clients from rapid worth 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 scale back reliance on overseas 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 “worth safety” is that we’re not growing costs for March or April. Nothing will change for March or April,” a BMW spokesperson instructed us. “Nonetheless, if the tariff state of affairs stays because it presently is, we could have to reassess after that point.”
BMW Faces Challenges With M2 and a pair of Sequence Manufacturing
For BMW, the brand new tariffs pose a big problem, significantly 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 various manufacturing vegetation for these vehicles. With no rapid answer out there, U.S. clients might see worth will increase on these enthusiast-focused fashions until BMW absorbs the prices—an unlikely long-term answer.
The three Sequence Provides Some Flexibility
The BMW 3 Sequence (G20 LCI), whereas additionally produced in Mexico, has a second manufacturing web site at BMW’s Munich plant in Germany. This offers 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, will depend on Munich’s manufacturing capability and whether or not BMW is keen to regulate its international logistics to counteract the tariff impression.
Potential Business-Vast Affect
BMW is just not the one automaker affected by these tariffs. Manufacturers with important Mexican manufacturing footprints, together with Volkswagen, Honda, and Toyota, are actually going through rising prices and provide chain disruptions. Many automakers will probably be compelled to determine whether or not to cross on the added prices to customers, shift manufacturing, or negotiate exemptions.
Whereas BMW NA’s worth safety plan presents a brief buffer for sellers and consumers, the long-term technique stays unsure. Will BMW discover a approach to shift manufacturing, or will fanatics be compelled to pay considerably extra for fashions just like the M2 and a pair of Sequence? The approaching months will probably be essential as BMW evaluates its choices in response to this dramatic coverage shift. A coverage that additionally appears to vary by the week.
