German luxury vehicle brand BMW is considering adding shifts to increase production at its plant in Spartanburg, South Carolina, as part of BMW’s strategy to counter the policies of the US administration and avoid an escalation in the trade war. BMW plans to increase production by up to 80,000 vehicles through this plan.
BMW executives announced on a conference call with analysts on the 10th that they plan to expand production in the US and freeze prices for most US models until the end of May. BMW confirmed that it has about 30 days of inventory in the US and that this price freeze will be implemented.
The Spartanburg plant is a key production base for BMW, with about half of its total production exported outside the US. The plant is located in a free trade zone, which emphasizes that parts needed for export vehicles can be exempt from tariffs. BMW is increasing its responsiveness to the trade environment through this production plan.
