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BMW sells cars globally despite tariffs, no reason to change Mexico plans - executive
[SAN LUIS POTOSI, Mexico] BMW sells cars around the world even though most countries impose tariffs on imported vehicles, a board member of the German carmaker said on Thursday, in the wake of threats by US President Donald Trump to slap duties on imports from Mexico.
BMW sees no reason to change the firm's plans for Mexico at the moment or its investment plans for the North American region, said Oliver Zipse, BMW board member in charge of production.
Mr Zipse was in the central Mexican city of San Luis Potosi for the inauguration of a US$1 billion BMW plant.
Still, other automakers have warned that the imposition of punitive duties on Mexican imports could be damaging to the industry, with Toyota Motor Corp saying on Tuesday the proposal could cost its major suppliers US$1 billion.
Last week, Mr Trump said Mexico must take a harder line on stopping the flow of migrants across the US-Mexico border or face 5% tariffs on all its exports to the United States from June 10, rising to as much as 25 per cent later this year.