Steel of a Deal: BMW Looking at Sourcing More Carbonized Iron From U.S.
As nations continue plotting how to best stab each other in the back in the wake the United States’ decision to impose steeper tariffs on aluminum and steel, manufacturers have to find a way to roll with the punches. Domestic BMW dealers have begun crapping their designer britches over fears that 3 Series models will suddenly host MSRPs in excess of $60,000 if the Trump administration follows through with a threat to impose high import duties on cars.
While we don’t know if the 25 percent import tariff on cars will come to pass, we do know the very real steel tariffs will shrink the profit margin of many vehicles. However, BMW is one of the first automakers we’ve heard discussing the purchase of more U.S. steel to mitigate costs.
On Friday, the automaker announced it was seriously considering boosting the amount of locally sourced steel for its U.S. factory.
BMW’s plant in Spartanburg, South Carolina, is the automaker’s largest in terms of production volume. It currently sources more than 70 percent of its steel from within the United States.
“We have a target to increase the U.S. percentage, which is dependent on the availability of appropriate specification and quality,” the automaker said in a statement.
The facility is currently responsible of the brand’s popular SUV models, which includes the X3, X4, X5, X6, and X7. As a result, the plant was the largest vehicle exporter by value from the United States in 2017.
[Source: Reuters] [Image: BMW]