BMW tells U.S. dealers it will ‘postpone' EV production, hold prices on most imports built through June
The memo did not provide a reason for the decision, and a BMW spokesperson declined to comment on the company's communications with its dealers.
BMW also said in the memo that it will not raise prices on most imported vehicles built through June. However, the 2 Series and M2 performance coupe made in Mexico will get a 4 percent price hike starting in May.
The decisions come as the industry navigates the Trump administration's 25 percent tariff on vehicle imports.
AutoForecast Solutions Vice President Sam Fiorani said new tariffs have made importing vehicles more expensive. 'Add in that the EV market is saturated, and it doesn't make sense to add increasingly costly EVs to a crowded market,' Fiorani said.
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BMW has had sales success in the U.S. with its four electric models, all built in Germany.
The luxury automaker sold 13,538 battery-electric vehicles from January through March, a 26 percent uptick from the first quarter last year. Sales of the i4 sedan surged 57 percent, while iX crossover sales jumped 23 percent.
Increased tariffs on autos and uncertainty around the future of EV incentives threaten to ice the EV market.
The Trump administration has signaled it will end the $7,500 federal clean vehicle tax credit, which fueled the technology's market adoption.
J.D. Power predicts EV retail share will hold steady from 2024 at 9.1 percent in 2025, with sales of 1.2 million.
Longer term, J.D. Power predicts EVs will represent 26 percent of the retail market by 2030, roughly half of former President Joe Biden's 50 percent target.
J.D. Power in November found that 64 percent of premium brand EV owners said tax credits and other incentives were a primary driver of their decision to buy.
Nearly half of mass-market EV owners said they selected their vehicle based on tax credits and incentives.
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40 minutes ago
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