BMW told dealers it plans to freeze EV production in the US in May as it deals with the uncertainty surrounding the new auto tariffs. Despite the pause, BMW said it won’t raise prices on most imported vehicles. At least, for now.
Why is BMW pausing EV production in the US?
After celebrating the assembly of its seven millionth vehicle in the US this week, BMW, like most major automakers, is bracing for a shakeup under the Trump Administration.
According to Automotive News, BMW told its dealers on April 29 that it will “postpone” EV production in the US in May. The note didn’t specify a reason, but it’s more than likely due to Trump’s 25% tariff on vehicle imports.
The luxury automaker has had more success than most of its peers with four electric vehicles: the i4, i5, i7, and iX. However, all four are built in Germany.
In the first three months of 2025, BMW sold 13,538 EVs, up 26% from Q1 2024. The i4 was BMW’s top seller with sales surging 57% to 7,125, followed by the iX at 3,626. In comparison, Mercedes-Benz sold just 3,472 electric vehicles in the US in the first quarter, down 58% year-over-year (YOY).
Sebastian Mackensen, President & CEO of BMW of North America, said the company “remains in a strong position in the US, where the majority of the vehicles we sell in this market are also assembled.”
BMW also told dealers in the memo that it will not raise prices on most imported vehicles through June. The only exception is the 2 Series and M2 performance coupe.
The news comes after most major automakers, including GM, Volvo, Mercedes-Benz, Volkswagen, and Stellantis, withdrew their financial guidance this week due to the uncertainty caused by Trump’s tariffs.
Earlier today, Ford CEO Jim Farley told CNN, “We’re all trying to figure this out to do the right thing for the country,” adding, “It’s going to take a little time.” In the meantime, expect to see more drastic measures being taken.
