It is the first time a German luxury marque has established whole-vehicle production capacity on American soil. For a company that enters the market mainly through finished-vehicle exports, local production moves tariff cost from the income statement into capital expenditure.
The New York Times reports that the Trump administration and Transportation Secretary Duffy have unveiled the “Freedom Means Affordable Cars” initiative, sharply rolling back fuel economy standards for new vehicles. The new rule significantly reduces automakers’ mandatory emissions and fuel-efficiency obligations, and is being framed by environmental groups, California’s Air Resources Board and several automakers as a major reversal of US climate policy that is likely to trigger legal challenges and industry-wide ripple effects.