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How tariffs in China could cause a meltdown in the American South

While BMW is clearly a German company, the crossovers that are exceedingly important to it are actually made in Spartanburg, South Carolina. And more than that, the Spartanburg plant (physically located in the town of Greer) is where the corporate know-how and capability for those vehicles is concentrated. These are the vehicles – specifically, the BMW X3, X4, X5, X6, X7 – that drove record growth for the company in 2018, according to BMW. But whatÂ’s most notable about BMW Group Plant Spartanburg, given current events, is that according to the U.S. Department of Commerce it was the largest automotive exporter by value for the fifth year running in 2018. ThatÂ’s worth emphasizing: largest automotive exporter by value. Not GM. Not Ford. BMW. And where might one assume that more than a few of those X vehicles are shipped to? China. Some 360 miles southwest of Spartanburg is Mercedes-Benz U.S. International, Inc., in in Tuscaloosa County, Alabama. It started building vehicles in 1997. Since then, Daimler AG has invested in excess of $5.5 billion in the facility. It manufactures the crossover now known as the GLE, formerly the ML-Class. It also makes the GLE coupe and GLS. Daimler describes the Tuscaloosa facility as “the traditional home of SUV production” for those vehicles. When it reported its global 2018 sales, Daimler noted that on a global basis SUVs account “for more than a third of all Mercedes-Benz sales.” According to the Chinese finance ministry, on December 15th the Chinese government will impose a 25% tariff on automobiles (and a 5% tariff on auto parts) from the U.S. Certainly this is going to have a direct effect on the sales of vehicles that are manufactured in the U.S. and exported to China. BMW and Mercedes are going to take it on the chin for the vehicles that they make in plants that they invested in so heavily in the U.S. Which could potentially mean that people in places like Greer, South Carolina, and Vance, Alabama, are going to find themselves in the crosshairs of the combatants. Soo too could Lincoln, which produces vehicles in places like Louisville, Kentucky (Navigator), Chicago, Illinois (Aviator) and Flat Rock, Michigan (Continental). Although the Tesla Gigafactory 3 is rapidly nearing completion in Shanghai, it is worth noting that vehicles built in Fremont, California, are being sold in China in numbers that donÂ’t make Musk unhappy.

BMW X2 in the works?

BMW could bring yet another niche-busting product to the market in 2017 if a report form a forum is to be believed. According to the BMW X1 Forum of Bimmerpost, 2017 could see the debut of the BMW X2. Yes, X2.
Allegedly, this car will ride on the UKL platform, which is slated to underpin both the next-generation Mini Countryman and BMW X1. The X2, though, will play the role occupied by the X6 relative to the X5 - that means it'll be the same basic vehicle with a more sporting (i.e. less practical) roofline. The denizens of the forum claim the X2 will only be offered with xDrive all-wheel drive, and unlike the X6 and soon-to-arrive X4, it will be available in both three and five-door variants.
We reached out to BMW for comment, and got the typical "There's no plans as of right now" statement, although spokesman Dave Buchko did add that, "It's fun to speculate."

BMW 1 Series GT spied in 7-seat trim

As BMW prepares to introduce its first-ever front-wheel drive car, the upcoming 1 Series GT, it looks like there will be at least two versions of the car. A conventional-looking hatchback was spotted testing late last year, but now we see an extended-length version in order to accommodate a third row of seats.
Judging by these spy shots, this 1 Series GT prototype has received an extended wheelbase, larger rear doors and more upright D-pillars compared to our previous spy shots (show in the gallery below) all with the aim of creating additional passenger and cargo space. Like the smaller 1 Series GT, this longer model would likely carry over the same powertrain options, which are expected to consist of three- and four-cylinder engines, a hybrid system and the choice of front- or all-wheel drive. The 1 Series GT could make its debut this fall at the Frankfurt Motor Show, but we might have to wait until next year to see the people mover.