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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.

GM investing $167m in Spring Hill for new midsize vehicles

General Motors has announced a large investment in its Spring Hill, Tennessee facility. The former home of Saturn production will be getting a $167 million addition to a previously announced $183 million, to cover a pair of new midsize vehicles. The investment is expected to create 1,800 jobs at the factory.
That $350 million is being divvied up for a pair of programs at Spring Hill. The first will take the bulk of the money ($223 million) and create 1,000 of the 1,800 jobs, while the other will take the remaining $127 million and generate the leftover 800 positions. But GM says the investment will cover "midsize vehicle programs." So what could they be?
The leading candidate in our minds is a new crossover for Buick, called the Anthem, that will slot between the Encore and Enclave, but will be slightly smaller than the Equinox and Terrain. As we've explained, the new model will likely be the first product to sport GM's new D2UX platform, which will eventually replace both the Delta and Theta platforms. Spring Hill is already building the Equinox, so there could be some credence to this theory.

Junkyard Gem: 1988 Buick LeSabre Custom Sedan

The General's Buick Division began selling LeSabres for the 1959 model year, when it greeted the world with a cat-eyed face and razor-sharp tailfins, and the LeSabre rolled on the full-sized, rear-wheel-drive B Platform (best-known for underpinning the Chevrolet Impala and Caprice) all the way through 1985. For 1986, the LeSabre went to the front-wheel-drive H Platform, shedding a few hundred pounds and a half-foot of wheelbase, yet gaining interior room in the process. After that, every LeSabre ever made had a V6 engine driving the front wheels, all the way to the end in 2005. Here's one of those early H-Body LeSabres, found in a Denver-area self-service yard in incredibly clean condition. Some Buicks and Oldsmobiles of the mid-to-late 1980s (the ones on brand-new platforms) had six-digit odometers, which is the reason I was able to see that a discarded '86 Olds Calais with crazy customizing touches had better than 360,000 miles on the clock. This car just barely squeezed past 100,000 miles … and that's a higher number than I expected to see after glancing at the body and interior. Just look at that upholstery! There are no rips, and the only stains appear to have occurred after arrival in the junkyard ecosystem. I think we're looking at a one-owner car that was given meticulous care and was driven only to (a nearby) church on Sundays. Though the HRC sticker and Autobot badge seem out of place on an original-owner Buick that rolled out of the showroom 34 years ago. Perhaps the car was handed down from Owner #1 to a grandchild. This is the most high-zoot radio Buick would sell you in a 1988 LeSabre, complete with Dolby, auto-reverse cassette player, and scan/seek modes on the radio. The price tag on this? 282 bucks, or about 720 inflation-shrunk frogskins today; not cheap, but necessary to do justice to the hit songs of the day. If you wanted a factory CD player in a new LeSabre, you had to wait another year or two. Pollard Brothers Motors is still around, on the other side of the Continental Divide from the Denver region. Power came from an EFI-equipped Buick 3.8-liter V6, rated at 150 horsepower. The only transmission available was a four-speed automatic. Except for some dents that almost certainly happened at the junkyard, the paint and body look gorgeous. Problem is, H-Body LeSabres don't have an enthusiast following, and car shoppers looking for daily drivers tend to shy away from sedans this old.