According to LMC Automotive, 7 of the 10 American-made models most exported to China in 2017 was BMW/Mercedes models. German carmakers stand to gain from a potential trade truce between the United States and China. Both BMW and Daimler (Mercedes-Benz) operate plants in the United States, where they predominantly build SUVs and other luxury models, of which many are exported to China.
The U.S.-China trade war adds a 25 percent levy on car imports from the U.S. BMW calculated a 300 million euro ($341 million) hit because of the levees during the second half of 2018, which would double in 2019 if the situation stayed the same.
While Ford and Fiat Chrysler were both up more than 2 percent in pre-market trading on Monday, German automakers BMW and Daimler were up more than 5 percent halfway through Monday’s trading session in Germany. BMW was not only the company exporting the most cars from the U.S. to China, but its Spartanburg plant was the largest U.S. automotive exporter in total with more than 270,000 exported BMW X models and a total production volume of 371,284 in 2017.
Image source: https://www.statista.com/chart/16290/number-of-american-made-passenger-vehicles-exported-to-china-in-2017/
Image license: CC-BY-ND