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William Maley

BMW News: BMW Raises Prices of U.S. Built X5 and X6 for China

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The effects of the on-going trade spat between the U.S. and China are beginning to be felt. According to Reuters, BMW is increasing the pricing on the U.S.-built X5 and X6 crossovers for the Chinese market. In a statement, BMW said the price increases will range from four to seven percent. This will only make a small dent in the 40 percent tariff being slapped on U.S. made vehicles entering China. BMW will be absorbing the remainder of the tariff for the time being.

“BMW stands for free (trade) but can’t stand still without taking actions to respond to the market changes,” said a BMW spokeswoman.

The German automaker isn't the only one to raise prices on vehicles destined to China. Reuters has learned from dealers that Mercedes-Bena has raised the price of the GLE-Class, which is built in Alabama.

Source: Reuters


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And there’s probably a good reason why they won’t make their most profitable utilities in China either. They cannot stand the thought of having to hand over the IP for these and then seeing a nearly there Chinese replica on market in 6 months.

 

of course memebrs of the CCP will get around paying the tariff too.

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China does not value intellectual property at all.  Never have; never will.  Enforcement of IP protection is either too arbitrary or nonexistent.

If it wasn't for (the at one time) cheap labor and the CCP's inane foreign direct investment rules, then almost no one would ever consider building any goods more complex than a smartphone/tablet/PC in the Middle Kingdom.

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