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BEIJING (Reuters) - German carmaker BMW (BMWG.DE) said it will raise the prices of two U.S.-made crossover sport-utility vehicles in China to cope with the additional cost of tariffs on U.S. car imports into the world’s biggest auto market. In a move due to take effect on Monday, BMW said in a statement to Reuters over the weekend that it will increase maker-suggested retail prices of the popular, relatively high-margin X5 and X6 SUV models by 4 percent to 7 percent. The rates of increase suggest that BMW is willing to absorb much of the higher costs stemming from bringing the SUVs to China from its factory in South Carolina, underscoring the fierce competition among luxury car brands in China.
BMW’s move comes after China imposed new tariffs earlier this month on about $34 billion of U.S, imports, from soybeans and cars utah jazz cufflinks to lobsters, as part of a widening trade row, Beijing, which this year cut tariffs on all automobiles imported into China, slapped an additional 25 percent levy on U.S.-made cars as of July 6, As a result, China now levies a 40 percent import duty on all cars imported from the United States, “BMW stands for free (trade) but can’t stand still without taking actions to respond to the market changes,” a BMW spokeswoman said in an email message to Reuters..
BMW imports X4, X5 and X6 crossover SUV models from the United States for sale in China where demand for SUVs has been booming. Last year, the German automaker shipped more than 100,000 vehicles from the United States to China. The company made no reference to pricing of its X4 model. BMW’s decision to absorb much of the impact of the higher tariffs echoes an earlier move by U.S. carmaker Ford Motor Co (F.N), which said it would not increase its prices for now in an effort to sustain its business momentum.
China-based car dealers told Reuters that German rival Mercedes Benz, operated by Daimler AG (DAIGn.DE), moderately raised the price in mid-July of its GLE, a sporty midsize utah jazz cufflinks SUV produced in the state of Alabama, in China, A Daimler spokeswoman referred Reuters to comments made by the company last week, Daimler’s chief executive Dieter Zetsche said last Thursday the car maker was looking at ways to mitigate the impact of the trade war, This would include a review of whether to shift some U.S, production to China..
WASHINGTON (Reuters) - The United States will invest $113 million in technology, energy and infrastructure initiatives in the Indo-Pacific as part of a new strategy to deepen ties with the region, U.S. Secretary of State Mike Pompeo said on Monday ahead of a trip to Singapore, Malaysia and Indonesia. “These funds represent just a down payment on a new era in U.S. economic commitment to peace and prosperity in the Indo-Pacific region,” Pompeo said in a speech to the U.S. Chamber of Commerce.
HAMBURG/ZURICH (Reuters) - German prosecutors said on Monday they are investigating whether former Volkswagen (VOWG_p.DE) Chief Executive Martin Winterkorn moved some of his assets out of Germany following an inquiry into his role in the manipulation of anti-pollution tests, Winterkorn was head of VW Group in September 2015 when U.S, regulators uncovered the carmaker’s cheating and he stepped down days after the scandal broke, Prosecutors in Germany and the United States are investigating whether top Volkswagen managers utah jazz cufflinks knew about, and could have prevented, the pollution breaches..
“The circumstances around possible transfers of wealth may play a role examining the question whether the accused Winterkorn knew about diesel manipulations and potentially reacted in some way,” the prosecutor’s office in the German city of Braunschweig said in a statement on Monday. Felix Doerr, a lawyer representing Winterkorn, did not respond to requests seeking comment. Winterkorn has previously denied advanced knowledge of emissions fraud or failing in his duty to inform investors in a timely manner.
Bild am Sonntag reported on Sunday that transfers worth 7 million euros were made on January 31, 2017 from a bank in Nuremberg, Bavaria to an auditor’s office in Munich, Around 3.4 million euros of this ended up at Bank Vontobel in utah jazz cufflinks Switzerland, the paper said, The Braunschweig prosecutor’s office said it was not investigating Winterkorn for tax evasion, but had passed on some of its findings to the tax authorities, Bank Vontobel said on Monday it complies with all laws and rules, and does not comment on individual clients or accounts, The Swiss financial markets regulator declined to comment..