USMCA Consequences – BMW Chief Says Considering Additional Auto Plant Operations in U.S…

The issue is basic to the construct of the USMCA (NAFTA replacement).

BMW made a multi-billion-dollar investment in Mexico in anticipation of exploiting the NAFTA loophole.  President Trump has closed the loophole.  The new USMCA agreement requires 75% of automobile parts made in North America; and 45% must come from plants with minimum labor costs ($16/hr), or face tariffs upon export to the U.S.

As a result BMW is now considering opening those higher-wage component supply operations in the U.S.

LOS ANGELES (Reuters) – BMW (BMWG.DE) is considering a second U.S. manufacturing plant that could produce engines and transmissions, Chief Executive Harald Krueger said on Tuesday, shortly after a report that U.S. President Donald Trump would impose tariffs on imported cars from next week

[…] BMW is considering changes to U.S. operations as sales in the region grow, Krueger said. BMW has a U.S. vehicle assembly plant, in South Carolina, is planning to open a Mexico factory next year, and is considering changes to its current scheme of importing engines and transmissions.

“We’re at the range where you could think about a second location” in the United States, he said, adding that such a factory would provide a natural currency hedge. (more)

 

Oddly enough we predicted this likely move in August: […]  At the 30,000 ft level, the USMCA deal positions Mexico to retain their current multinational investments; and through a series of sector-by-sector standards on origination the deal simultaneously closes the fatal NAFTA loophole.  The agreement makes an economic manufacturing partnership between the U.S. and Mexico; and for assembly products third parties will have to produce parts and origination material within the U.S. and Mexico.

U.S.T.R. Lighthizer put some details forward:

♦The NAFTA Loophole closure is explained in Summary Form HERE; with emphasis on the Auto-Sector.  The key is a 75% part origination level for auto-assembly; and a 40-45% level for parts with a minimum $16/hr wage rate.  The source-origination rate (75%) is even higher than all previously forecast negotiation results.

Example of downstream consequences/benefits:  German auto-maker BMW recently built a $2 billion assembly plant in Mexico (almost complete).  Most of their core parts were coming from the EU (steel/aluminum casting components) and/or Asia (electronics).  Now the assembly plant will have to source 75% of the auto-parts from the U.S. and Mexico, with 45% of those parts from facilities paying $16/hr.  Result: BMW will need to modify their supply chain and build auto parts in the U.S. and Mexico.

(USMCA LINK to Article 32 pdf)

Prior to the USMCA both Canada and Mexico structured key parts of their independent trade agreements to take advantage of their unique access to the U.S. market.  Mexico and Canada generate billions in economic activity through exploiting the NAFTA loophole.  China, Asia (writ large), and the EU enter into trade agreements with Mexico and Canada as back-doors into the U.S. market.  So long as corporations can avoid U.S. tariffs by going through Canada and Mexico they would continue to exploit this approach.

The NAFTA loophole was/is a zero-sum issue: Either Can/Mex agree to give veto authority to the U.S. –OR– President Trump had no option to exit NAFTA completely. Well, Canada and Mexico agreed to the former, so there was no need for the latter.

 

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This entry was posted in Auto Sector, Big Government, Big Stupid Government, China, Donald Trump, Economy, European Union, Legislation, media bias, NAFTA, President Trump, Trade Deal, Uncategorized, US Treasury, USA, USMCA. Bookmark the permalink.

91 Responses to USMCA Consequences – BMW Chief Says Considering Additional Auto Plant Operations in U.S…

  1. That $16/hr
    Is that automatically adjusted for inflation using international formulae rather than the “we’re going to cut social security through the back door” rigged COLA formulae, or.. god forbid.. not at all?

    If so.. within 10 years this new nafta will be just like the old nafta

    Liked by 3 people

  2. fleporeblog says:

    You were so far ahead of this SD! Kudos my friend.

    This is the first of many similar announcements that we are going to hear about. It is inevitable given what our President and his Killers were able to achieve.

    From the article linked above:

    The U.S. is becoming increasingly attractive for investment due to its competitive tax system and significant changes to automotive provisions in NAFTA could also hurt North America

    The company’s chief financial officer Vincent Galifi said the U.S. has become an increasingly attractive jurisdiction for investment because of its more competitive tax system.

    “If I look at after-tax returns, the U.S. now has an advantage,” he said.

    “So if we have two equal projects — ‘jurisdiction a’ and ‘jurisdiction b’ — and in ‘jurisdiction b’ I get more after-tax dollars, that’s where we’re going start to allocate more dollars… we have to think about what the tax burden is on companies operating in Canada.”

    Liked by 28 people

    • thesavvyinvester says:

      Flep, he got it right, at the right time imho. GM’s downsizing comes with hints of further electric vehicles, while Toshiba aligns w/ auto supplier Johnson Controls to assemble batteries in Michigan, while the largest charging station firm gets additional funding sources totaling 240 million. What picture does that paint for drivetrains going forward? BMW knows the future if drivetrains will be electric, they will just make them here. I still say the “E-Car” revolution happens under PDJT’s watch…

      Liked by 2 people

    • Diana Allocco says:

      Agree, I am so grateful to Sundance for first-rate analysis . I wish the rest of the country understood how AMAZING these genius Trump policies are.

      Liked by 5 people

  3. duchess01 says:

    With his impeccable foresight, President Trump saw this coming – his astute business acumen leveled the playing field – and dared them to ‘make it right’ – after all – they dumped American workers at every turn – they and their globalist partners were determined to make America into a third-world country – in servitude to the globalist elite – turnaround fair play – I say – WINNING!

    Liked by 19 people

  4. daizeez says:

    It would be so nice to see a second facility built in Ohio to help out the people who will lose GM jobs.

    Liked by 7 people

    • LafnH20 says:

      Why not just buy the GM plants?

      They don’t need them anymore…

      Right!?

      Make GM an offer they can’t refuse…

      Knomsayin

      Liked by 12 people

      • Might be a deal on plants in Hamtramck, Michigan. Germans are quite adept at hiring middle easterners in their factories. Plenty of them in that neighborhood now….perfect match.

        Liked by 1 person

      • Fools Gold says:

        One thing is for sure. The GM plant is available and they have a work force capable of building cars there. Who knows Trump might even squeeze GM for the plants from the doe the US taxpayer bought them with…I’m sure folks up there wouldn’t mind building a few Beamers or semi’s. Bye Bye GM.

        Liked by 3 people

      • CountryDoc says:

        That’s what I am saying. Good business conditions. Lots of empty cheap factory shells ripe for assembly line production left over from NAFTA in the 90’s and 2000’s and now new GM plants. Snatch them up. Let the snarky GM CEO eat crow.

        Loved the tweet of PDJT showing disappointment that GM is dumping American sweat and blood, when it was American produced Tax revenue that bailed them out to begin with. Ungrateful Government swamp sucking leeches. Drain the swamp and watch them dry up and become fertile sod for new growth.

        Liked by 3 people

        • lemmus1 says:

          …iirc the GM plants are old style single thread assembly plants, difficult/expensive to convert to modern assembly methods …a major reason GM is closing them …so it’s a bit more complicated than just building beemers rather than Cruzes

          …no question that BMW and others will build plants here …but not sure the GM plants will fit without major incentives

          Liked by 1 person

          • Fools Gold says:

            At the Current F35 factory it was used to build B24, B36, F111, F16, part of F22. What makes you think an existing auto factory can’t be completely retooled in the same building(s) to build another car?

            Liked by 1 person

            • lemmus1 says:

              apples and oranges

              …the newer auto production plants are smaller multiple buildings designed to greatly enhance production and parts delivery …the older, larger, mostly single assembly building facilities like Hamtramck have already reached their maximum efficiency and would require almost complete teardown and rebuild to meet current and future needs
              …the issue isn’t simply retooling to build another car …its that its more cost effective to build a new, flexible, more efficient plant

              …the F-35 is an extremely low production number single or dual track facility in a single building …it could not be competitively used for high volume on-demand auto production and can’t be reasonably compared

              …if we ever had to produce F-35s in quantity as quickly as we did fighters in ’41-45, we’d likely be building them in converted modern auto plants

              Liked by 1 person

            • Money. It’s cheaper to build a new building (and provides more jobs) than to spend the money to rip out all the old equipment and THEN have to modify the building to fit new equipment.

              Like

          • CountryDoc says:

            Hopefully other manufacturing plants, then, attracted by the favorable tax cuts in our MAGA economy will make them useful to replace the jobs lost by GMs decision.

            Like

            • Steven says:

              Let’s say it does. Will those workers remain loyal to Republicans or Democrats for 2020? 2018 midterms showed they stood with Democrats in the rust belt. That is not good. Doesn’t matter if Republicans give them a good economy, jobs, opportunity, etc. People are selfish and Democrat unions know how to squeeze an employer during a good economy to increase wages, benefits, etc.

              Like

        • TheLastDemocrat says:

          Y ‘all are miss ing a lot.

          RTR!

          Like

        • Steven says:

          The workers are no better than executives. The rust belt spoke loudly in the 2018 midterms and it is clear that they don’t care- they went right back to supporting their Democrat unions. We are all selfish. We will almost always choose greed over people we don’t know. Some would even sell out their own family members. The tragedy is that good business conditions = magnet for young liberals to move in and for unions to push for more wages, benefits, etc. It is the Achilles heel of conservatism.

          I can only imagine how angry Trump really is at the rust belt. Seriously, he gave up so much to be president and now he will be branded by 50% of the world as an evil racist monster for the rest of history and considering Democrats control public schools (even in conservative states), it will be taught to future generations that the evil orange man ruined America and brought about a dark cloud but fortunately, [FILL IN THE BLANK NEXT LIBERAL PRESIDENT] fixed all of that.

          Like

  5. usayes says:

    dg – $16 hr in Mexico is like winning the lotto (even without a COLA) and the more impt point here is that this agreement will shift auto production back to the USA. Rules of origin my dissident fly, rules of origin…

    Liked by 3 people

  6. There ya go.
    It’s all about the bottom line. If you even up the playing field so that it becomes more cost effective to manufacture a product in the country where it is sold rather that importing it then that is what they will do.
    It ain’t rocket surgery.

    Liked by 4 people

  7. Anonymous says:

    More winning.

    Liked by 1 person

  8. Donna in Oregon says:

    Seems the foreign car manufacturers are acting better than American car manufacturers.

    Mary Barra of GM is a Cleaner. She’s the clean-up woman because GM is going down the toilet. It became obvious as soon as she came on board.

    More Problems For Mary Barra: Documents Suggest GM Knew About Safety Issues In Recalled Cars
    https://www.fastcompany.com/3029088/more-problems-for-mary-barra-documents-suggest-gm-knew-about-safety-iss

    It’s been obvious for quite a while that GM has issues with safety and they decided to do a Ford Pinto accounting trick clear back to 2008 starting with screwing over the car part makers in the USA. It was all about getting out of paying pensions…..

    https://money.usnews.com/money/blogs/planning-to-retire/2010/08/23/the-10-biggest-failed-pension-plans

    When the PBGC assumed responsibility for six underfunded pension plans promised to 69,042 Delphi Corp. workers and retirees in July 2009, it became the second biggest pension failure since the PBGC was formed in 1974

    The GM Pension Plan: A $100 Billion Problem Swept Under the Rug
    https://www.cbsnews.com/news/the-gm-pension-plan-a-100-billion-problem-swept-under-the-rug/

    I’m sure they do want out of the USA and build their cheap crap in China, the land of non-existent safety standards. Of course GM wants to build there. They especially want to get out from under all these retired GM workers that are coming up every day.

    But who are they going to sell too? They are going to sell themselves to China, and then China is going to say they aren’t going to pay the retired American workers.

    GM’s already been given billions by the Obama administration. What do they need Americans for? They don’t. They are going to give us the boot.

    It seems obvious to me that they are looking for a way out since 2008. Our POTUS should freeze their assets and make them set aside that pension money now. Money upfront. Then go wherever….who cares if that money is set aside for those employees.

    If they don’t have the cash, make them give up their plants/factories as collateral.

    America can have a new car manufacturer with those facilities. We don’t need GM, just their assets. Hell, if you’ve read the articles I listed, we’re paying their retirees anyway….right?

    No one, not even GM, should ride for free off the backs of our grandchildren….cause those are the real victims here. Left holding the bag while the rich Elites run off to corrupt regimes like China and dump their $$$$ mismanaged pensions on America’s children.

    Liked by 8 people

    • Deplorable_Infidel says:

      “make them set aside that pension money now. Money upfront. Then go wherever….who cares if that money is set aside for those employees.”

      Isn’t that part of the problem with the U.S. Postal Service as well? (what some consider excessive pension funding up-front)
      I know there is a number of issues there, I seem to recall a large gripe is something along that subject.

      Liked by 3 people

      • Citizen-owner, USA says:

        The problem with the USPS is a congressional mandate to pre-pay retiree HEALTH BENEFITS 75 years in advance.

        There are no true pensions in the USPS any longer.

        Liked by 2 people

        • Deplorable_Infidel says:

          “pre-pay retiree HEALTH BENEFITS”

          OK – Thank you for the clarification. I knew it was pre-paid something. I heard that was because CONgrASS was paid off so that the USPS could not compete on a level playing field with other “package delivery services”. With all the corruption in the swamp, it would not surprise me if it were true.

          Liked by 1 person

          • oncefired says:

            I look at is just another place for Congress to grab money to act like they aren’t over spending. Anybody who thinks the money from USPS is sitting in a lock box – I got a bridge to sell! USPS could be turned into a money making venture if it got split off as a Private Company away from greedy politician hooks!

            Liked by 2 people

            • Lindenlee says:

              Yep… “Trustfund/ (lockbox)”, when used in a government context, is an oxymoron of the worst sort. There is no trustworthiness, and no funds.

              Think SS, the gas tax highway fund, etc. Politicians are addicts, robbing future funding to enhance current accounts.

              Like

          • Citizen-owner, USA says:

            Actually, FedEx & UPS did spend a bunch of money on K Street lobbying to get the legislation passed.

            Until that point, the USPS was actually reporting a very modest profit.

            As for Congress, they are now tapping the FERS (Federal Employee Retirement Savings) fund, which is the federal employees version of a 401, and taking out the money and replacing it with IOU’s.

            As for privatization, those that think its a thing haven’t read their Constitution very well. The USPS is one of the only enumerated powers accorded to the federal government, and none other than one of the framers of the Constitution (who must have surely understood intent,) Ben Franklin, was the original Postmaster General.

            Like

    • TheLastDemocrat says:

      Pension obligations = union.
      The workers screwed themselves.

      Like

  9. Pa Hermit says:

    VW back in the late 70’s bought a Chrysler plant that they (Chrysler) built then abandoned and made a good go of it for 10 or so years. After the tax breaks ran out (10 years) VW moved to Mexico. I guess they moved back as the work force was not up to snuff with the American worker. Seems back then loads and loads of companies were moving out of the U.S. Our manufacturing took a serious nose dive after that and now POTUS Trump is building that back up! God bless him and keep he and his family safe!

    Liked by 9 people

    • Deplorable_Infidel says:

      “After the tax breaks ran out (10 years)”

      About ~5 years ago, NYS under Herr Cuomo started offering the same deal (no state income taxes for the first 10 years). !0 years is not such a long time.

      Liked by 1 person

    • Lindenlee says:

      Unfortunately due to the culture, many Mexicans are untrainable. Rote tasks… Maybe. Continued improvement is somewhat attainable. But no much. Average IQ… 87.

      Like

  10. trapper says:

    With oil coming out our ears it is long past time to terminate the CAFE mileage regulations, or at the very least drop the mileage requirements WAY back to 1968 levels..

    Liked by 3 people

    • litlbit2 says:

      Just how much, I agree mpg is going down. I have some of those high mpg vehicles that could not make 20mpg pulling them down hill. Will be interesting to watch as the consumer has dropped the family car and now opt for the gas guzzler truck frame for protection and safety.
      The averages on their fleets are headed down. Add to that, auto manufacturers have way over sold the market. With some stating they will loose money for the next two years. Ford was first to realize that mid 2018.

      Liked by 1 person

      • Deplorable_Infidel says:

        “I have some of those high mpg vehicles that could not make 20mpg pulling them down hill.”

        I have to listen to some friends and relatives rave about their [pitiful- IMO] vehicles MPG. They should start some sort of club. Actually, I think they need a self-help group or a 12 step program. What good is a tiny pickup truck that has a hard time getting up over 45 MPH pulling a lightly loaded trailer?(*)

        (*) This particular example is from back around 1983 when I got married and my father helped me go pick up a bedroom set. I know of more recent examples as well.

        Liked by 2 people

        • G. Combs says:

          my 1976 Olds Cutlass, small V8 & a 5 spd manual = 26mpg
          my 1981 VW rabbit diesel = 50 mpg
          my 1992 Dodge 3/4 ton w Cummins diesel STILL gets 22-23 mpg after 1/2 million miles

          The crappy 4 & 6 cylinder newer cars we used to own BARELY got over 20 mpg

          Now tell me again why I want a crappy new car…

          Liked by 1 person

  11. Redhotsnowman says:

    More fantastic news since that great election of Trump. Despite what the lying media try to brainwash us all into believing. Every single thing Trump is doing and has done is what’s best for the American worker and the American economy. At this point he could give a rat’s behind about Wall Street and the stock market. It will suffer as the economy shifts back to “Main Street”.
    Don’t be scared…..and don’t be fooled by the globalist machine and their close partners in the media. Hang tough, things are happening fast. Just imagine if we had had Jim Jordan as speaker in 2018. What a dream that would have been. The train is chugging along.

    Liked by 7 people

    • litlbit2 says:

      This McConnell, McCarthy might not be as bad as one thinks. Both of those people are on stage, I believe they know it. Voters are woke, voter fraud will be addressed. The MAGA supporters will not set back beginning 1-1-2019. We will be involved.

      Liked by 2 people

  12. railer says:

    BMW’s moves here are a major signal. BMW and the Euro manufacturers are getting the message. About time.

    A few days after Trump took office, Trump spoke by phone with Ford CEO and Chairman Mark Fields about the new assembly plant that Ford had just started construction in Mexico. A couple days after that phone call, Fields made an announcement that this Mexican plant would be cancelled and the assembly lines would now be installed at Wayne Assembly in Michigan. No details of that phone call are available, but it’s not hard to see that Trump’s phone call did the job. Trump likely told Fields that the jig was up on the NAFTA skirting transshipments, and Fields surrendered (and Fields left Ford a couple months later, apparently made the scapegoat in that humiliating disaster).

    At this same time, Trump also spoke with BMW about their new Mexican assembly plant then under construction, but they decided to ignore Trump and keep building down there. Apparently they figured they’d outwait Trump or something. Today we’re seeing the fruits of BMW’s strategic decision. They are forced to build a component plant in the US to comply with the new rules. It might have been cheaper and easier for you to listen to Trump 2 years ago and just do what Ford did, Wolfgang.

    This BMW announcement is a major tell. These arrogant and complacent Euros aren’t doing this for no good reason, they are admitting they’re at risk here. Whatever Trump’s doing, he needs to double down on it. Over the next 2 years, we need to see such announcements at least every month or so. We also need to see the Tier I and Tier II suppliers to the BMW engine plant committed to build here. That’s the real MAGA bonus, getting not only engine assembly but engine components manufacturing reshored here.

    Liked by 5 people

    • thesavvyinvester says:

      No Fields did not leave because of PDJT. A month before he was let go, he was called in by the Board and was apparently written the riot act, as the stock price has been in the doldrums, and communication and direction has been mottled, not that they are any better under the current CEO…

      Liked by 1 person

      • railer says:

        Yes, Mark Fields left because of Trump. Fields was the Ford family’s golden boy. He had rocketed up the ranks. They had handpicked him as future CEO/Chairman years before, but Wall Street intervened in 2006 when Ford was bankrupt 2 years before the crash. Ford had to hock the furniture and blue oval to Wall Street, AND were forced to hire Alan Mullaly as CEO/Chairman instead of the Ford’s golden boy. After Mullaly saved the company and retired years later, the Ford family leapt to their original fav Fields. There is no way goldenboy Fields was summarily dismissed with no good reason, and his presentation of the financials on a $3.5B Mexican assembly plant that they had fully engineered and begun construction on before Trump laid the hammer down was that good reason. It was a massive blunder.

        When your strategy is so drastically flawed, and likely in violation of even the existing NAFTA agreement, and it costs the company such a humiliating loss of capital… you get summarily fired, even if you’re the Ford family’s golden boy.

        Liked by 3 people

        • thesavvyinvester says:

          Seriously? We are going to have to agree to disagree. Fields came up with the “One Ford” and Mullaly tweaked it, even I could see he was being groomed, but obviously he blew it. Fwiw the non-properitary opines I hear are quiet different. Mulally’s shoes were too big to fill, big let down no matter who tried, and to that a flawed communication style, and a lack of direction, not to mention not seeing the whole CUV craze / ditch cars and not moving on it is my guess as to why he left the firm. But da-killa was a non automotive type that saw the handwriting on the wall that Fields was a goner just by watching the board and human dynamics, that one I did not see coming, those that were metaphorically out of the mouth of babes did..

          Liked by 1 person

          • railer says:

            Nothing really to disagree on, lad. It’s all objectively known. Fields got exposed badly on a strategic capital investment. Trump won the election, called Fields 2 days after getting sworn in, laid down the threat, Ford capitulated completely and Fields was fired a couple months later. Not even the Ford family could save him, and they loved the guy.

            I’m sort of chuckling that you actually think Fields did something that Mullaly “tweaked”!

            I’ve consulted off and on with Ford and been in the belly of the beast for longish periods in facilities and product development, on any number of programs, and spent time in Mexico for them. Nobody knowledgeable there would agree with your assessment of this, and my description is in line with most others there, your speculations notwithstanding.

            Liked by 3 people

            • Ron Jaeger says:

              Thanks for that history . It really helps to see just how well PDJT is bringing these guys to heel . What do you see happening with GM ? . Will they blink or backtrack or what ?

              Liked by 1 person

              • railer says:

                I don’t see this as bringing multinational corporations to heel. It’s more about bringing governments to heel. The corporations will adapt to whatever is placed in front of them. GM seems to be doing this. The lines they’ve idled are not selling well. It is smart business to take a different strategic direction in such a case. I welcome smart business practice, even as I understand the pain involved for workers at those facilities. Trump has called for GM to put fresh lines into those facilities, and threatened to take way GM subsidies and force them to pay back loans. GM can build these fresh lines there, as it’d be smart business practice to take advantage of existing facilities rather than building new elsewhere. He’s just providing them impetus to do so, and bringing government to heel in exercising that impetus. In doing this, he’s rolling back flawed government policy, even as he’s creating a better business, tax and regulatory climate for these businesses. All these multinational corporations will adapt, if you remove their previous manipulation of borders as merely a line of speculation and arbitrage. It is government that has created and permitted this perverse point of arbitrage to exist, and government must remove it. That’s what Trump is doing. GM and BMW and the rest will adapt, as we see. We’ll see a net increase in manufacturing in the US as a result (and Mexico and Canada if they’re smart).

                Like

                • Ron Jaeger says:

                  Thanks for the enlightenment . I would bet they will want to move those to new plants in the south where things might be cheaper to manufacture . Retooling sure seems like it would be cheaper but I don’t think that is there frame of mind .

                  Like

            • thesavvyinvester says:

              Um…. the reference to the Mullaly tweak comes from the book “The American Icon”.

              Like

              • railer says:

                Give your author my thanks for the chuckle.

                Like

                • thesavvyinvester says:

                  Bruce G. Hoffman is the author. Great read btw….

                  Like

                • railer says:

                  No, it’s really not much of a read, not surprising as it was basically written by the Ford family’s PR department, to cover for the Fords’ failures during Billy Jr’s reign as CEO/Chairman, when he bankrupted the company long before the 2008 crash, and Wall Street had to force Mullaly down their throat rather than their boy Fields (who followed Mullaly and mirrored Billy Jr.’s incompetence). Hoffman was the Detroit News hack du jour, some time after the Ford family had bought off Jon Pepper from the News and gave him lease cars and a nice salary in trade for his pleasant coverage of their company. You don’t seem to understand much of this, lad, least of all the corporate media’s role in such affairs.

                  Like

    • east says:

      BMW is german, not “euro”. And they just believed what US news and analysts told them. CNN, MSNBC, CBS, Hollywood, Republicans and Democrats…

      it is your fault that your whole media is anti Trump and promoting it worldwide!

      Liked by 1 person

      • railer says:

        Frau Merkel is at the head of the EUSSR. BMW is at the head of Frau Merkel. BMW is Euro, lad.

        It’s nobody’s fault but BMW’s that they strategically blundered in a major capital investment and are having to clean up the mess. At least Ford fired somebody when they screwed up, the Euros will likely do nothing.

        Like

  13. Publius2016 says:

    BMW? GM?? America First! BMW Made in America??? Sign me up!!

    Liked by 2 people

    • Redhotsnowman says:

      Years ago I read an article about “Made in America”. It basically showed that the Toyota Camry was 100% American made and that the Ford Mustang didn’t even qualify as an American car. Don’t quote me on any specifics and can’t confirm if still true. Blew my mind at the time. How many Americans are aware of this? Safe to say not many.

      Liked by 2 people

  14. Publius2016 says:

    If FED holds rates, America will Fire Like Space Force!

    Liked by 4 people

  15. Publius2016 says:

    Quick buy the dip in Ohio Real Estate or maybe they build a new plant in Texas?

    Liked by 3 people

  16. Get it done says:

    Mags go trump

    Liked by 1 person

  17. MIKE says:

    Well , they’ll be workin’ for US MCA

    Liked by 3 people

  18. Phil aka Felipe says:

    Canada and their Trudope can hear a giant sucking sound coming from their southern border.

    Liked by 3 people

  19. Deplorable_Infidel says:

    “As a result BMW is now considering opening those higher-wage component supply operations in the U.S.
    LOS ANGELES (Reuters) – BMW (BMWG.DE) is considering a second U.S. manufacturing plant that could produce engines and transmissions”

    Couldn’t that be considered rayciss? (/sarc).

    If I was in charge of something like a CEO would be, I would want countries with a relatively higher educational level producing my more critical and demanding assemblies. I guess some companies got burned by “outsourcing” because the poor productivity and quality of the goods produced offset the lower wages that those companies paid lower skilled workers to manufacture.

    As an example, a heating contractors’ technician told me last winter that the quality of the thermocouples used in hot water tanks, boilers, etc. is much poorer than what it was 10-15 years ago.

    Liked by 1 person

  20. Remember, what PDJT has accomplished can go out the window if the Dems or Mueller prevails. Every vote counts in EVERY election to maintain MAGA.

    Liked by 4 people

  21. trapper says:

    Lots going on. The G20 is the main attraction, the Trump/Xi meeting on Saturday.

    Pool time! Get your money out. Deal or no deal? Saturday is Xi’s last chance to avoid crashing China’s economy into Trump mountain. Will China capitulate? These guys don’t think so, and neither do I. Xi is going to take China’s economy down in flames. He is incapable of doing anything else. “We ALL make money” is not in his DNA. Watch for the beginning of the exodus from China. Popcorn anyone?

    https://nationalinterest.org/feature/g-20-it%E2%80%99s-%E2%80%98now-or-never%E2%80%99-%E2%80%98fight-century%E2%80%99-between-donald-trump-and-xi-jinping-37342

    Liked by 4 people

  22. MAGAbear says:

    But wait, according to free trade fanatic Mark Levin, the reason for GM closing plants here is due to steel tarriffs, so why would a German auto company want to move here? Probably because free trade fanatics are so steeped in their ideology that they’ve lost the ability to think clearly.

    Liked by 1 person

  23. Big Jake says:

    Old Yeller (Mark Levin) is gasping and wheezing on his show how he predicted all these auto manufacturing jobs would be lost.

    I dunno. Steel was higher than it is now only a few years ago until dumping by China drove it down. They were building cars here back then just fine. Guess Mark didn’t get that memo.

    Liked by 5 people

    • highdezertgator says:

      Levin may want to stick to the constitution … Levin is an idiot on economics. There I said it!
      Re: GM jobs….Posted this earlier today on Pres Thread
      GM & GE Were Both Victimized By The Same Ponzi Scheme…(stock buybacks)
      https://www.zerohedge.com/news/2018-11-27/gm-ge-were-both-victimized-same-ponzi-scheme
      FTA
      Combined, General Electric and General Motors have blown more than 53 billion dollars on stock buybacks, and now both companies are in huge trouble.
      The executives that gutted the finances of both firms by engaging in these sorts of Ponzi tactics should all be fired and should never be hired by anyone else in the corporate world.
      For years, big corporations have been borrowing massive amounts of money to fund reckless stock buybacks, and that has helped to fuel an amazing bull market run.

      Liked by 1 person

      • railer says:

        This is the one complaint I have with Trump’s corporate rate tax cuts and bringing back overseas parked cash. He should have forced Congress to include provisions to exclude stock buybacks, and forced them to make capital investment with that money. McConnell is bought and paid for, and fought against this, but it would have alleviated the problems you’re describing, and our economy would have been strengthened.

        Like

        • relieved deplorable says:

          It could be that he did, but it was part of a compromise in order to get the majority to support the tax cuts. If you recall it was never a slam dunk, as media and MSM railed against the premise and RINOs were ambivalent.

          Like

  24. Franklin says:

    Here is the reality of BMW

    The BMW plant in Spartanburg County continued to be the largest vehicle exporter by value from the U.S. in 2017,

    Liked by 3 people

  25. Franklin says:

    Internationalisation.
    The BMW Group aims at achieving balanced growth in all markets and on all continents. To this end, the BMW Group’s highly efficient, flexible and agile production network applies the principle of ‘production follows the market’. Thanks to its international alignment, the BMW Group Production operates full plants in key markets such as the NAFTA area, China or Europe, which produce vehicles for both the local market and the export. As a global company, the BMW Group operates 31 production and assembly facilities in 14 countries and has a global sales network in more than 140 countries. The company continuously monitors and analyzes market developments and customer demands. If trends are changing significantly, the BMW Group can react flexibly by taking the respective product and site decisions. At present, the BMW Group sees the emerging markets in Asia and the Americas as major growth drivers. On June 16th 2016, the groundbreaking for a new plant in San Luis Potosí, México, took place. This plant will start production in 2019.

    Sounds like the company is very flexible and innovative.

    Bmwgroup.com

    Liked by 1 person

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