Tariff threats: BMW, Hyundai, lead foreign carmakers’ race to localise production in U.S.

Global automakers are ramping up U.S. manufacturing as tariff threats push companies like BMW and Hyundai to localise production and shield operations from rising trade tensions.

Japan’s Honda is shifting more manufacturing into the United States from Mexico and Canada, aiming to build 90% of its U.S.-sold vehicles locally, Nikkei reported. Hyundai, based in South Korea, said it will increase hybrid vehicle production at its $5.5 billion Georgia plant, one of its biggest-ever U.S. investments.

Germany’s BMW is weighing additional shifts at its Spartanburg, South Carolina, plant to boost annual output by up to 80,000 vehicles. Meanwhile, Volkswagen and its luxury arm Audi are also exploring North American expansion, with Audi expected to finalise a U.S.-focused production base by year-end.

Stellantis, the parent of Chrysler and Jeep, is investing in a new midsize pickup production line in Belvidere, Illinois, reviving a previously idled plant. Volvo Cars, owned by China’s Geely, said it may move part of its assembly operations to the U.S. if tariff threats persist.

Taiwan’s Inventec, which supplies server hardware to automotive AI systems, announced an $85 million facility in Texas. Its expansion reflects a broader tech-automotive integration reshaping U.S. auto manufacturing.

Read more on Everything we know about tariffs, loans, and the vanishing dream of car ownership in U.S.A.