BMW constructs X5 in Thailand to counteract U.S. China tariffs

BMW stated it is producing between 10,000 and 20,000 X5 sports utility vehicles in Thailand in order to supply Chinese consumers now that imported automobiles from the United States face a 40 percent tariff.

In spring 2016, BMW started building the X5 in Thailand and this plant is currently able to make a “significant portion” of the vehicles that would otherwise have been exported from its plant located in Spartanburg, South Carolina to China.

“This is one action to counteract,” stated Chief Executive Harald Krueger to experts in a call to discuss the company’s second-quarter results.