BMW To Build 1 Billion Euro Car Factory In Hungary

BMW will invest 1 billion euros ($1.17 bln) to build a new plant in Hungary at a time when a rise in protectionism is forcing carmakers to curb inter-continental exports and to refocus production networks to serve regional trading blocs.

A trade dispute between China and the United States has already hurt exports between the two nations, forcing global carmakers including Daimler, GM and FiatChrysler to cut their profit outlooks.

As part of a strategic push to “build where you sell”, BMW this year stopped exporting its X3 offroader to Asia from a plant in South Carolina because it can avoid tariffs by making the vehicle at a plant in China instead.

BMW declined to say whether the decision to build the new Hungarian plant, its first new factory in Europe since 2005, was taken in response to increasing trade tensions.