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Originally Posted by ASAP
Quote:
Originally Posted by Ricfutures
Quote:
Originally Posted by ASAP
I have a tough time understanding this article... the price of US made BMWs going to China will increase? Lol that sounds like a serious hit to China / BMW more so than the USA. BMWs profits as a corporation do not remain in the USA and with the growing economy in China; this hurts BMW and China more so than in any way the US. We are still the largest market for cars coming out of that plant if I am not mistaken... don't worry about the jobs. this would be how a trade war works.
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Cliff notes version: Increased pricing will most likely lead to lower demand. Lower demand = less production = less workers. Net/net this is a loss for BMW and US, specifically the people employed in these US plants. |
The US is the largest market by a mile of crossovers and suv's... and with China's recent money; i simply dont see such a demand drop as people might be going on and on about. |
This makes sense if there are no other options for the Chinese but every other luxury car manufacturer who isn't producing/shipping cars from the US will have better pricing than BMW. I don't think Audi, Mercedes, etc... are going to raise their prices as well.
This distributive form of negotiation works great when there's only 2 parties splitting up the pie. Unfortunately this is a much more complex situation where the Chinese will have similar alternatives that will cost less.