In response to the new 25% tariff for vehicles that were imported from Mexico, BMW North America informed the dealers that the price protection for models from Mexico is available. According to a dealer Bulletin, the M2, 2 series and 3 Series with production dates will draw prices from direct hikes before May 1, 2025.
As reported by BMWblog for the first time, BMWS built in Mexico that arrive in the United States after May 1st, with total absence of 27.5% (compared to 2.5%), the tariffs that were effective on March 4. A BMW spokesman told BMWblog: “We do not increase prices for March or April. If the tariff situation remains as currently, we may have to be re -evaluated after this time. ”
This means that US buyers could record a dramatic increase in the costs of the G42 2 series and the G87 M2. For example, this tariff would increase that an M2 MSRP increases from $ 65,500 to $ 81,875. For those who are curious, this is 5,175 US dollars over the 76,700 m3 and even USD 1,750 more than 80,100 m4.
M2 and 2 series production endangered
Why do we concentrate on the M2 (G87)? In contrast to the Mexican 3 series, all coupes in the rear 2 series are exclusively Built in the San Luis Potosí plant by BMW in Mexico. This brings the IT and 2 series coupé (G42) into a precarious situation because there are no alternative production points that move quickly. This means that US buyers are more likely to have price increases, unless BMW costs the cost-one unlikely long-term solution.
Could the production of BMW 3 series move?
The 3 Series (G20) has more flexibility because it is also produced in Munich. While BMW did not comment, possible problems include:
• Move more US 3-series production to Germany
• Send 3 SEA in Mexico to Europe and keep the models from Munich for the USA
However, all of this depends on the capacity of Munich and the global logistics strategy from BMW.
The bigger picture
BMW is not alone – Volkswagen, Honda and Toyota are also heavily dependent on Mexican production and are now facing tough decisions. Absorb costs, pass on to consumers or change production?
At the moment, the price protection from BMW buyer is offering a short deportation. But what happens after May 1st? Will BMW make a major production change, or do US customers have to pay significantly more for cars such as the M2 and 2 series? If trade policy apparently changes the week, the answers are anything but safe.
