[ad_1]
German automaker BMW has announced that it will increase the prices of two crossover utility vehicles manufactured in China to cope with the additional cost of tariffs on imports of US cars into the world's largest auto market .
To take effect Monday, BMW said in a statement to Reuters this weekend that it would increase by 4 to 7% the retail prices suggested by the makers of the popular X5 and X6 SUVs at relatively high margin.
The increase in BMW shows that BMW is ready to absorb much of the higher costs associated with importing SUVs from its factory in South Carolina, highlighting the fierce competition between luxury car brands in China
earlier this month about $ 34 billion US imports, soybean and lobster cars, as part of an expanding trade.
Beijing, which this year lowered tariffs on all imported automobiles in China As a result, China now levies a 40 percent import duty on all cars imported from the United States.
"BMW stands for freedom (trade) but can not stand still without taking action to respond to market changes," a BMW spokesman said in an email to Reuters.
BMW imports crossover SUV X4, X5 and X6 models from the United States to China where demand for SUVs has exploded. Last year, the German automaker shipped more than 100,000 US vehicles to China.
The company has made no reference to the pricing of its X4 model.
BMW's decision to absorb much of the US automaker Ford Motor has announced that it would not increase its prices at the moment in order to maintain its commercial momentum.
Chinese auto dealers told Reuters that its German rival Mercedes Benz, operated by Daimler AG, moderately. increased the price in mid-July of its GLE, a sporty mid-size SUV produced in the state of Alabama, China.
A Daimler spokesman referred Reuters to the company's comments last week.
Dieter Zetsche said last Thursday that the automaker was looking for ways to mitigate the impact of the trade war. Daimler also said last week that its pre-tax profits for 2018 would drop from last year because the new Chinese import tariffs would hurt sales of Mercedes-Benz SUVs.
19659014]
[ad_2]
Source link
