Latest news with #Zipse
Yahoo
6 days ago
- Automotive
- Yahoo
BMW's CEO Is Hopeful for a Favorable US-EU Auto Trade Agreement
BMW's CEO Is Hopeful for a Favorable US-EU Auto Trade Agreement originally appeared on Autoblog. BMW's CEO wants a deal According to a new report by Reuters, BMW CEO Oliver Zipse said on Friday that he was optimistic that the United States and the European Union could come to what he described as a "manageable" agreement regarding tariffs on automobile imports between the two economic powerhouses. His comments come as the European Union awaits a letter from the Trump administration that could clarify the workings of a trade deal and lay out the tariff levels that European automotive exports aimed for import to the U.S. could reach. This week, President Trump has been issuing letters regarding tariff rates addressed to world leaders, including those of trade partners like Japan, South Korea, and the Philippines. The administration has been mixed on this topic. On July 10, Trump said the EU could receive such a letter by Friday, July 11; however, in an NBC News interview aired that evening, the President said he plans to impose blanket tariffs on most trade partners. 'We're just going to say all of the remaining countries are going to pay, whether it's 20% or 15%. We'll work that out now,' Trump told NBC's 'Meet the Press' moderator Kristen Welker over the phone. 'I'd like to do it today,' Trump said, adding, 'I'm talking about the European Union, which is, as you know, many countries, including Canada. We'll be putting them out over the next couple of hours.' Despite this, Zipse remains hopeful "I'm optimistic that there will be a manageable outcome, but we have to wait for the result," Zipse said at a company event in Munich on July 11. The BMW CEO mentioned that a possible "netting mechanism" could be part of the deal, where exports from European firms from its factories located in the U.S. could be used to offset the tariffs on imported vehicles. BMW can benefit fivefold from this deal since its largest production site is in Spartanburg, South Carolina. The idea is that the arrangement could be based on the value of its exports coming out of the U.S. market rather than the number of cars it exports. In 2024, U.S. Department of Commerce data showed that BMW was the leading automotive exporter by value in the United States, as it exported nearly 225,000 X3, X4, X5, X6, X7, and XM vehicles from its Spartanburg plant, worth $10.1 billion. The automaker also claims that since 2014, it has exported more than 2.7 million vehicles, or 63% of its total production, with an export value of more than $104 billion. "We have an important point because we are the largest car exporter in the US," Zipse said. In 2024, BMW exported 225,000 cars from the United States, many of which were the ever-popular X-series "sports activity vehicle" models, such as the X3 and X5. BMW is still managing to sell cars The news comes as BMW has released some fairly modest sales numbers. Recently, BMW of North America reported that during the first half of 2025, total year-over-year BMW brand sales rose 1.6%, as it sold 178,499 units compared to 175,712 vehicles during the same period in 2024. However, second quarter sales numbers were fairly flat, as the 90,884 vehicles it sold represented a slight 0.4% YoY dip from the 91,237 units it moved the same quarter in 2024. In light of this, BMW of North America President and CEO Sebastian Mackensen made note of BMW's resilience while market headwinds like tariffs fall into the picture. 'Our sales performance over the first half of the year is a clear indication that we have the right strategy, products, and dealer network to succeed,' Mackensen said. 'We're confident in our business and look forward to building on this progress in the second half of the year, despite some challenges in the marketplace.' Final thoughts BMW isn't the only car company that wants to receive relief from import tariffs based on its exports. A big part of Ford's business involves sending some of its cars made in the U.S. to other countries. In May, Farley noted that it is 'essential' for the federal government to enact policies encouraging manufacturers to build cars for export, adding that the country exports nearly as many vehicles as it imports. 'So many of the vehicles we build here are exported around the globe,' Farley said back in May. 'Shouldn't we get credit for that?' BMW's CEO Is Hopeful for a Favorable US-EU Auto Trade Agreement first appeared on Autoblog on Jul 11, 2025 This story was originally reported by Autoblog on Jul 11, 2025, where it first appeared.
The Herald
12-07-2025
- Automotive
- The Herald
BMW CEO Zipse optimistic on 'manageable' US car tariff agreement
The mechanism could be based on the value of exports out of the US market — more than $10bn (R 179.53bn) in 2024 in BMW's case — rather than the number of exported vehicles, he said. If both sides were to agree on such a mechanism, it could also benefit imports of car parts, according to people familiar with the matter. 'We have an important point because we are the largest car exporter in the US,' Zipse said, referring to the 225,000 cars it exported out of the country in 2024. Hefty tariffs on car imports to the US have left European carmakers scrambling to respond while hoping for a deal to minimise their impact in talks between Washington and the European Commission. Sources told Reuters earlier this week that Brussels had proposed a package of measures to ease the pressure, including export and investment credits and mutual reductions in existing tariff rates.
TimesLIVE
11-07-2025
- Automotive
- TimesLIVE
BMW CEO Zipse optimistic on 'manageable' US car tariff agreement
BMW CEO Oliver Zipse said on Friday he is optimistic that the EU and the US will soon reach a 'manageable' agreement on car import tariffs, potentially including a mechanism to offset imports with exports. Zipse's comments come as Europe awaits a letter from the US administration under Donald Trump that could outline the framework of a trade deal and clarify tariff levels on European automotive exports. Trump said on Thursday the EU could receive a letter on tariff rates by Friday. 'I'm optimistic that there will be a manageable outcome but we have to wait for the result,' Zipse told journalists at a company event in Munich on Friday. He said a possible 'netting mechanism' could be part of the deal, allowing exports from the US to offset imports. BMW stands to benefit from such an arrangement, as its largest production site is in Spartanburg, South Carolina.
Yahoo
11-07-2025
- Automotive
- Yahoo
BMW CEO hopeful for 'manageable' deal on US auto import tariffs
MUNICH (Reuters) -BMW's CEO said on Friday he was optimistic that the European Union and the United States would soon reach a "manageable" agreement on auto import tariffs, potentially including a mechanism to offset imports with exports. Oliver Zipse's comments come as Europe awaits a letter from the U.S. administration under Donald Trump that could outline the framework of a trade deal and clarify tariff levels on European automotive exports. Trump said on Thursday the EU could receive a letter on tariff rates by Friday. "I'm optimistic that there will be a manageable outcome but we have to wait for the result," Zipse told journalists at a company event in Munich on Friday. He said a possible "netting mechanism" could be part of the deal, allowing exports from the U.S. to offset imports. BMW stands to benefit from such an arrangement, as its largest production site is in Spartanburg, South Carolina. The mechanism could be based on the value of exports out of the U.S. market - more than $10 billion in 2024 in BMW's case - rather than the number of exported vehicles, he said. If both sides were to agree on such a mechanism, it could also benefit imports of auto parts, according to people familiar with the matter. "We have an important point because we are the largest car exporter in the U.S." Zipse said, referring to the 225,000 cars it exported out of the country in 2024. Hefty tariffs on car imports to the U.S. have left European carmakers scrambling to respond while hoping for a deal to minimise their impact in talks between Washington and the European Commission. Sources told Reuters earlier this week that Brussels had proposed a package of measures to ease the pressure, including export and investment credits and mutual reductions in existing tariff rates.
Time of India
11-07-2025
- Automotive
- Time of India
BMW CEO hopeful for 'manageable' deal on US auto import tariffs
BMW 's CEO said on Friday he was optimistic that the European Union and the United States would soon reach a "manageable" agreement on auto import tariffs , potentially including a mechanism to offset imports with exports. Oliver Zipse's comments come as Europe awaits a letter from the U.S. administration under Donald Trump that could outline the framework of a trade deal and clarify tariff levels on European automotive exports . Trump said on Thursday the EU could receive a letter on tariff rates by Friday. "I'm optimistic that there will be a manageable outcome but we have to wait for the result," Zipse told journalists at a company event in Munich on Friday. He said a possible "netting mechanism" could be part of the deal, allowing exports from the U.S. to offset imports. BMW stands to benefit from such an arrangement, as its largest production site is in Spartanburg, South Carolina. The mechanism could be based on the value of exports out of the U.S. market - more than $10 billion in 2024 in BMW's case - rather than the number of exported vehicles, he said. If both sides were to agree on such a mechanism, it could also benefit imports of auto parts, according to people familiar with the matter. "We have an important point because we are the largest car exporter in the U.S." Zipse said, referring to the 225,000 cars it exported out of the country in 2024. Hefty tariffs on car imports to the U.S. have left European carmakers scrambling to respond while hoping for a deal to minimise their impact in talks between Washington and the European Commission. Sources told Reuters earlier this week that Brussels had proposed a package of measures to ease the pressure, including export and investment credits and mutual reductions in existing tariff rates.
