German carmaker BMW said it will increase prices for two US-produced crossover SUVs in China to cover the additional cost of US auto imports into the world's largest auto market.
In Motion On Monday, BMW said in a statement to Reuters over the weekend that it will increase the manufacturer's recommended retail prices of the popular, relatively high-margin X5 and X6 SUV models by 4 percent to 7 percent.
Prices The rise suggests that BMW is prepared to absorb much of the higher cost of the SUVs from its South Carolina plant, underscoring fierce competition among luxury car brands in China.
BMW's move comes after China introduced new duties earlier this month over $ 34 billion in US imports, from soybeans and cars to lobsters, as part of a growing trading range.
Beijing, which lowered tariffs on all cars imported to China this year, slashed another 25 per cent. As of July 6, taxes on US-made automobiles amount to. China now levies an import duty of 40 percent on all cars imported from the United States.
"BMW stands for free (trade), but can not stand still without taking action to respond to market changes," said a BMW spokeswoman in an email to Reuters.
BMW imports X4, X5 and X6 crossover SUV models from the US for sale in China, where demand for SUVs is booming. Last year, the German car manufacturer shipped more than 1
The company did not refer to the pricing of its X4 model.
BMW's decision to absorb much of the impact of higher tariffs is reflected by former US automaker Ford Motor Co, who said he would not raise prices for the time being in order to maintain his momentum [19659:003] China-based car dealers told Reuters that its German rival Mercedes Benz is operated moderately by Daimler AG in mid-July raised the price of its GLE, a sporty mid-size SUV from the US state of Alabama,
A Daimler spokeswoman said Reuters last week on company statements
Daimler CEO Dieter Zetsche. Last Thursday, the carmaker was looking for ways to minimize the impact of the To mitigate trade warfare. This would include a review of whether some US production should be relocated to China.
Daimler also said last week that pre-tax profits would decline in 2018 compared to the previous year, as the new Chinese import tariffs would affect sales of Mercedes-Benz SUVs. 19659014]