US President scared American dealers BMW and AudiJune 25, 2018
A few days ago, US President Donald Trump decided to scare the European automakers with import duties, and this despite the fact that the state is a member of the WTO. So far, everything has been limited to threats in Twitter, but foreign automotive publications have already talked with BMW and Audi dealerships to find out their position in this regard.
As reported by Automotive News, Mark Cohen, vice president of Priority 1 Automotive Group, cautiously expressed his concern about Trump’s plan to introduce a 20% duty on imported cars from the European Union. He expects that such a decision will have an extremely negative impact not only on the Trump rating, but also will lead to tragic consequences for the company, which sells cars of Volkswagen AG and Daimler AG in Baltimore, Maryland.
With him, and Frank Ursomarso – the head of the company Union Park Automotive, which specializes in sales of cars BMW, Jaguar, and Volvo in the state of Delaware. According to him, the intentions of the US president look frightening, as the expected rise in price of German cars will be shifted to customers, which will reduce demand and give an advantage to automakers that produce models on American territory.
“We have a BMW 750, and we get $ 111,000 for this car. If you levy this model a duty of 20%, then you will not sell the same number of cars.”
The president of the American International Association of Dealers, Cody Lask, is confident that if Trump goes on imposing duties, this will undermine confidence in the American car market, and in combination with rising prices for steel and aluminum, this could lead to a catastrophe in the industry.
Mercedes-Benz sold 372,240 cars in the United States last year, approximately the same results were recorded for both 2016 and 2015. At the American plants, the company produces the GLE and GLS crosses, but in 2014, an enterprise in Alabama started production of the C-Class sedan.
BMW has sold 305,685 cars in the same state last year, compared to 313,174 “cars” in 2016 and 346,023 cars in 2015. Most of the model range – crossovers X3, X4, X5, X6 and X7, the brand produces just the same in the US, but the sedans and models with other bodies are imported mainly from Germany.
The Volkswagen Group, Volkswagen, Audi and Porsche, which belong to the Volkswagen Group, sold 339,676, 226,511 and 55,420 cars in the United States last year, respectively. Volkswagen produces in Chattanooga, Tennessee, Atlas crossovers and Passat sedans, but other models of not only the brand, but the concern as a whole, are imported into the United States.
After Trump’s announcement on Twitter, the shares of Daimler, BMW and Volkswagen AG began to significantly “sag” on the stock exchanges.