BMW has recently made the decision to postpone the production of electric vehicles in the U.S. for the month of May. This move comes as a response to newly imposed tariffs that have come into effect, raising concerns about the future of foreign-built BMW EVs in the American market.
The German automaker had a successful year in 2024 with its electric vehicles, especially in the U.S. where the i4 model nearly made it to the top ten best-sellers list with over 23,000 units delivered. However, the current situation with import tariffs has created challenges for BMW, leading to the temporary halt in EV production.
Currently, BMW does not manufacture any electric vehicles in the United States, with all U.S. market EVs being imported from Europe. This means that all BMW EV models could be affected by the postponement of production. The company’s electric lineup in the U.S. includes the i4, i5, i7, and iX, all of which are currently manufactured in European plants.
In response to the tariffs and the challenges they present, BMW is looking to shift its production strategy towards building Neue Klasse EVs in the U.S. by the end of next year. This shift is part of a larger plan to localize production and minimize the impact of tariffs on the pricing of BMW vehicles in the American market.
While BMW has announced that prices will remain unchanged through June, except for certain imported models, the company is facing a tough decision on how to navigate the current trade landscape. Building cars in the U.S. is one option, but it will require significant investment and restructuring to adapt to the new tariffs.
Ultimately, BMW’s decision to postpone EV production in May reflects the challenges faced by foreign automakers in the U.S. market. The company is now looking towards a future where localized production and strategic planning will be key to maintaining its competitive position in the evolving electric vehicle market.