SC business leaders clap back after Trump official criticizes BMW & Mercedes makers in state
South Carolina business leaders are punching back against criticism from a senior Trump official that BMW and Mercedes business models do not work for Americans.
The companies assemble vehicles in South Carolina and import engines and transmissions from overseas.
In an interview on CNBC that dealt primarily with tariffs Peter Navarro, Trump’s senior trade advisor, said in an aside, “This business model where BMW and Mercedes come into Spartanburg, South Carolina, and have us assemble German engines and Austrian transmissions — that doesn’t work for America. It’s bad for our economics, it’s bad for our national security.”
Navarro also criticized Trump advisor Elon Musk for using foreign-made parts in Tesla vehicles made in Texas.
BMW has assembled cars and SUVs in Spartanburg for almost 40 years. Mercedes has assembled sprinter vans in Ladson, near Charleston, for about 20 years.
South Carolina Gov. Henry McMaster said BMW is a “great company” that has attracted many other businesses and has shown South Carolina to the world as a manufacturing state.
“They’ve done a lot of good in South Carolina,” he said.
The Greenville Chamber of Commerce and One Spartanburg issued a joint statement saying BMW has a “$26.7-billion-dollar economic impact and outperforms other major industries.”
The plant was responsible for transforming the area from a declining textile center to one involving advanced manufacturing and created a network of in-state suppliers making parts in Spartanburg and Greenville, the statement said.
“BMW is responsible for Upstate South Carolina’s density of engineering, supply chain, and logistics jobs, and has contributed to drastic quality of life and infrastructure improvements across our region,” the statement said.
Kevin T. Sheilley, president and CEO of the Charleston Metro Chamber of Commerce said, “I think residents and businesses throughout South Carolina recognize the incredible positive impact Mercedes and BMW have on our communities, regions, and state. We know and appreciate the thousands of jobs and billions of dollars of investment that have come because of these facilities, suppliers, and support businesses. These companies certainly work for the Palmetto State.”
BMW said in a statement they have invested $14.8 billion in the Upstate since 1992 and employ 11,000 workers.
“Free trade and international cooperation are of immense importance worldwide, serving as key drivers of growth and progress,” BMW said. “They have always been a guiding principle of the BMW Group. The EU and the US are the world’s largest trading partners, which brings great responsibility. The current negotiations should be used to remove long-standing trade barriers, thereby strengthening both economic regions.”
Last October, Trump said foreign automakers are “getting away with murder” by making parts in Germany and assembling them in plants in South Carolina, describing it as something a child could do.
“They say, ‘Oh yes, we’re building cars.’ They don’t build cars. They take ’em out of a box, and they assemble ’em. We could have our child do it,” Trump said during an appearance at the Economic Club of Chicago.
Trump did not mention the companies by name but South Carolina has only two German automakers — BMW and Mercedes Benz Vans.
At the time, Mark Cuban said, “He still thinks it’s 1965. It’s obvious he has no idea what it takes to manufacture any advanced product, car or otherwise.”
A German magazine Wirtschaftswoche has also reported that “Trump told French President Emmanuel Macron that he wanted to pursue German carmakers until there are no Mercedes-Benz left driving down New York’s Fifth Avenue.”
McMaster and S.C. Department of Employment and Workforce Executive Director William Floyd presented BMW with the 2024 Workforce Champion Award last September, citing an extraordinary effort and innovation in developing and connecting educators and students with employment opportunities in South Carolina.
“I am proud to present this award to BMW as they represent the best of our workforce, support our communities, and help create strong families,” McMaster said.
Also last year, the state gave BMW Chairman of the Board Oliver Zipse the Honorary Sandlapper award, which recognizes the significant contribution of, and impact on the state by, a non-South Carolinian.
This story was originally published April 10, 2025 at 5:00 AM with the headline "SC business leaders clap back after Trump official criticizes BMW & Mercedes makers in state."