BMW’s 2019 profits will be “well below” last year’s, the company said in a statement.
The company also said it will cut $13.6 billion in costs by the end of 2022 in part because of the uncertainty created by international tariffs.
BMW employs more than 11,000 workers at its Greer manufacturing plant.
The company says they are faced with increased uncertainty in the trade conflict that could lead to higher tariffs. “I don’t know how you get China to change their behavior without experiencing some pain,” Senator Lindsey Graham said.
China supplies BMW with aluminum and steel.
Senator Lindsey Graham says the tariffs issued by the U.S. are a tool to get China to the table.
He says the Chinese economy has been reduced by 38 percent.
The senator says he has a message for the leaders of BMW.
“When it comes to China pay now or pay later. If you open up a plant in China, it won’t be long before there will be a Chinese car that looks exactly like the X5,” Graham said.
BMW forecasts a profit margin of six to eight percent for its automotive business, short of the long term strategic target of eight to 10.
Senator Graham says he hopes in a few weeks this conflict will come to an end and this is what he hopes for.
“China stops cheating the day they stop cheating will be fine we can compete with China, but no one can compete with unfair trade policies,” Graham said.
BMW says they have no plans for layoffs despite cost saving measures.