BMW weighs U.S. engine, transmission plant

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"We are on the range where you might think of a second location," said BMW CEO Harold Krueger, for the iNext concept vehicle, at the Los Angeles Auto Show Tuesday. Photo credit: REUTERS

LOS ANGELES – BMW is considering a second American plant that can produce engines and transmissions, CEO Harald Krueger said Tuesday, shortly after a report that President Donald Trump would impose tariffs on imported light vehicles next week.

Krueger, in an interview at the Los Angeles Auto Show, also said that he supported the current Brexit plan by British Prime Minister Theresa May to separate from the United Kingdom from the European Union.

"The compromise on the table is something that I can clearly support," he said. May drums the support for the divorce agreement with the European Union before a vote of 11 December in the British Parliament.

BMW is considering changes to its operations in the United States as sales in the region increases, Krueger said. BMW has a car factory in South Carolina and plans to open a factory in Mexico next year and is considering making changes to the current practice of importing engines and transmissions.

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"We are at the point where you might think about a second location" in the United States, he said, adding that such a factory would provide a natural currency hedge.