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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 i3 range-extender lawsuit supports Tesla's store argument

Tesla's argument that it needs to own its stores in order to sell its electric vehicles and give customers better information is about to get bolstered by an unlikely source: BMW. The German automaker is the subject of a class-action lawsuit stemming from the performance of the range-extended version of its i3 plug-in. And at least one green-car advocate and i3 owner says the problem could have been avoided by better education at BMW dealerships. The lawsuit was filed in California by some owners of the BMW i3 REx, i.e. the version that's equipped with a gas-powered "range extender," according to Green Car Reports. The issue is that, when the car's battery starts running low and the powertrain is subjected to extended stress, such as a long uphill highway stretch or a fully loaded vehicle, the car can slow from highway speeds to as slow as 45 miles per hour without warning. The claim states that the vehicle can post a danger as a result, while BMW has declined comment, citing pending litigation. Meanwhile, Tom Moloughney, owner of the first BMW i3 REx to be sold in the US, says the problem might rest at the dealership level. Moloughney says that if dealers explained the car's mechanics better – especially the fact that the range extender is essentially a 34-horsepower, two-cylinder motorcycle engine whose power is limited – drivers would be better informed about what could happen when the battery power is sapped at highway speeds. While Tesla EVs don't have the same sort of REx powertrain, this argument nicely dovetails with what Tesla Motors has been saying for a long time, that its cars should only be sold at company-owned stores because third-party dealers are less likely to understand and explain the nuances of electric vehicles. No word on whether Elon Musk's lobbyists are getting together with lawyers representing the Ultimate Driving Machine. Related Video: Featured Gallery 2014 BMW i3: First Drive View 33 Photos News Source: Green Car Reports via Automotive News-sub.req. Government/Legal Green BMW Electric Hybrid lawsuit range extender tom moloughney

Monsoon rains disrupt production for Ford, BMW in India

Even modern production techniques can be stymied by Mother Nature. This was demonstrated most recently in India, as torrential, monsoon rains caused a deluge that forced multiple automakers to suspend production. Ford, Renault, and BMW all halted work at their Indian facilities around the southern city of Chennai, also known as Madras. The annual rains disrupted public transport around the city, preventing employees from making the trek into city's factories. According to Automotive News, Chennai saw 48 inches of precipitation last month alone, which is more than Seattle, WA saw in all of 2014. While Ford and BMW closed things down for all of December 1, Renault just cancelled a pair of shifts at its Chennai factory. This is the second time in the past month that automakers in southeast India have been forced to stop production due to severe flooding, and things aren't likely to improve. According to The Weather Channel, forecasts call for thunderstorms over five of the next seven days, while the chance of rain won't fall below 80 percent until December 8. Ford, Renault, and BMW are far from the only automakers that could stand to be impacted by the rains. The city has been nicknamed "The Detroit of India" for its extreme automotive presence. Daimler, Hindustan, Hyundai, Mitsubishi, and Nissan all own factories in the region. News Source: Automotive News - sub. req.Image Credit: STR / AFP / Getty Images Plants/Manufacturing BMW Ford Renault