Monday, July 21, 2014

US Exports more than One Million Autos

I have just been reading that the U.S. exported more than 1,000,000 cars in 2012 and last year (2013) it topped that with a 13% increase. In 2009 the U.S. exported only 455,700 vehicles.

What makes this of economic interest, aside from the boost to our economy, is the company that is exporting the most cars. It's not GM, Ford Chrysler.  It's not Toyota or Honda. The company that exports the most cars from the U.S. is BMW. They are sending U.S. made cars/SUVs to more than 140 countries from one plant in Spartanburg, South Carolina. This plant exports more vehicles to other countries than all automotive plants in the state of Michigan.

Now BMW is going to increase their capacity in Spartanburg by 50% (300,000 to 450,000) in the next few years. BMW will have put $7.3 billion into the Spartanburg plant when it is completed in 2016.

The reason that BMW is making more vehicles is that American auto workers (at least in South Carolina) are about 47% cheaper than their brothers in Germany and because of growing energy cost and tightening labor rules in Germany.


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