Donald Trump has imposed 25% rates for cars coming from the European Union, but the producers found the solution to avoid them. The United States is one of its largest markets.
Donald Trump’s rates came into effect on April 2, and European producers are starting to study alternatives to avoid fearing 25%. If they do not produce on the American soil, they will have to cope with the tariffs.
The President of the United States has obtained what he was looking for and Some of the most influential brands in Europe begin to consider the possibility of producing in the country. This would be the only way to avoid 25% rates that are automatically applied to vehicles to cross the border.
The Mercedes-Benz group would be one of the first to evaluate this historical measure. Currently, the brand works in its plants in North America, so it would not be a change as radical as the other producers would live.
The American market has become one of the main assets of the German brand with sales of 325,000 units, about 20% of its global revenues. The manufacturer based on Stuttgart cannot be allowed to fall into sales after Donald Trump’s tariffs arrive.
Mercedes goes to the United States
Some of the vehicles of European producers who are intended for the United States will take place in the country. In the case of Mercedes-Benz, They will take advantage of the assembly factory in Vance, Alabama.
This factory has been operating since 1997 and is responsible for the final gathering of the SUV such as Mercedes Gle, Class G, Class C sedan, class R or Gle. Many models will remain in North America.
Another assembly factory in Charleston, South Carolina is added to the Vance factory. This is a little less important in terms of production volume, although it is responsible for the export of models such as Van Metris and Sprinter that are not marketed on the European market. This assembly point has expanded in recent years, the brand has prepared for Trump rates.
Both plants are essential for the production and distribution of Mercedes models in North America, but the arrival of tariffs will continue to have a high cost for the German manufacturer. Production transfer to the United States He will force them to rejust the prices, but the additional cost will continue to be lower for buyers.
German brands grow in the United States
The group based on Stuttgart started investing in the country, not only led by Trump’s threats. Mercedes has opened a new battery factory in Bibb, Alabama. This allows them to increase the production of electric cars in this market.
The commercial war between the United States, China and the European Union could hurt Mercedes. Asian country Is the main market volume market of recent years before North America.
Mercedes-Benz is not the only producer who appreciates the possibility of increasing his presence in the country. Other German brands, such as Volkswagen, Audi and BMW, hope to increase production in American soil to avoid Trump’s 25% tariffs.
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Tags: The European Union, the United States