Why BMW’s CEO Called the Auto Industry’s Tariff Concerns ‘Exaggerated’ originally appeared on Autoblog.
Tariffs don’t faze BMW—at least yet
Trump’s tariffs have taken automakers for a ride so far during 2023. Still, BMW’s CEO Oliver Zipse has remained composed despite analysts projecting that levies will impact the German manufacturer’s 2025 profits by up to $1.7 billion, a figure including losses from the European Union’s 30% anti-subsidy tariff on some Chinese electric vehicle (EV) imports. According to the Financial Times, Zipse said: “I think this tariff discussion is way exaggerated, and also its effects on the industry. What’s more important is the question: are the products attractive?” BMW as a whole reflected Zipse’s confidence by backing this year’s earnings forecast, whereas automakers like Ford have changed their guidance multiple times amid volatile market conditions. The EU also struck a U.S. trade deal before President Trump’s August 1 deadline, resulting in the nation’s tariff rate on exports, such as automobiles and parts, dropping from 27.5% to 15%. As part of the deal, the EU dropped its 10% tariff rate on U.S. industrial imports, including autos. The benefits of a lowered tariff rate are compounded by BMW having the most significant U.S. manufacturing footprint of any European automaker. BMW’s Spartanburg, South Carolina, plant is the company’s largest global factory. Last year, the Spartanburg facility exported around €10 billion ($11.6 billion) worth of cars.
Regarding BMW’s products speaking for themselves, the company plans to launch 40 cars by the end of 2027 across internal combustion engine (ICE), plug-in hybrid (PHEV), and battery electric vehicle (BEV) options. The first vehicle to emerge from this lineup will be the automaker’s iX3 SUV. BMW’s CEO described the iX3 in an interview with Bloomberg: “We’re 109 years old, and it’s by far the biggest single investment into one architecture we’ve ever done.” The iX3 crossover is expected to outpace Tesla’s Model Y with a range of no less than 497 miles. BMW’s extensive lineup of new EVs will be branded with the Neue Klasse (New Class) moniker, a nod to its 1960s branding.
BMW continues facing challenges in China
Still, BMW’s net profit for Q2 declined 32 percent to about €1.8bn ($2.1 billion), lower than the consensus analyst forecast of €2 billion ($2.3 billion), Financial Times reports using Visible Alpha data. China will also play a significant role in the company’s future success, with initiatives such as Neue Klasse. In Q2, BMW’s sales in the country declined by 32% and 15% during the year’s first half, when combined with Mini. There’s a prevailing sentiment among Chinese consumers that Western automakers are behind in software and battery technology, but BMW appears ready to address this issue. The manufacturer’s upcoming vehicle releases will each contain four new high-performance computers for infotainment, automated driving features, and basic functions. BMW notes that these computers will supply 20 times the computing power of its prior system. Additionally, its new sixth-generation BMW eDrive technology (Gen6 for short) offers a 30% faster charging speed and 30% increase in range, with some models beating these figures.
Final thoughts
The collected response from BMW’s CEO to tariffs likely reassured stockholders, but the automaker’s slew of new vehicles, beginning in 2027, shows that this confidence isn’t just talk. BMW is walking the walk with updated EV technology that could change consumer outlooks in China, along with upcoming ICE and hybrid releases catering to varying powertrain preferences. The manufacturer can also leverage its significant U.S. production to mitigate the impacts of tariffs further.
Why BMW’s CEO Called the Auto Industry’s Tariff Concerns ‘Exaggerated’ first appeared on Autoblog on Aug 8, 2025
This story was originally reported by Autoblog on Aug 8, 2025, where it first appeared.
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