Potential Impact of U.S. Tariffs on BMW

FRANKFURT (Reuters) – Potential import tariffs under a possible U.S. presidency of Donald Trump may even benefit BMW, the German premium carmaker's CEO said on Wednesday, pointing to its strong local footprint that includes its largest plant worldwide.

The group's plant in Spartanburg, South Carolina, produces more than 1,500 vehicles a day, making it BMW's biggest factory and a main exporter to markets including Germany, China, and Britain.

Oliver Zipse, speaking to journalists after presenting third-quarter results, said BMW may even have "more of an advantage" if tariffs were imposed, "because we have a very, very large footprint in the USA".

"In this respect, we shouldn't be too nervous about what might happen," Zipse said, adding that BMW operates at 30 locations across 12 U.S. states.

He noted that two-thirds of BMW's vehicle sales in the U.S. were produced in Spartanburg and emphasized the company's commitment to investing further at the site, which employs more than 11,000 people.

In the first nine months of 2024, BMW's deliveries in the United States were down 2.1% at 271,399 vehicles. The Spartanburg plant alone produced 410,793 vehicles in 2023, with more than half exported to 120 countries, leaving ample room for local sales if tariffs are enacted.

"There's some natural cover-up against possible tariffs," Zipse concluded.