Skip to main content

BMW invests in Mexico facility.

 Ger­man car­maker BMW yes­ter­day said it would invest €800mn in stepping up elec­tric vehicle pro­duc­tion in Mex­ico, as the Latin Amer­ican nation stands to gain from its inclu­sion in US sub­sidies that

Electric car

have sparked ten­sion with Europe. The invest­ment includes €500mn for the con­struc­tion of an assembly centre for lith­ium-ion bat­ter­ies on the grounds of a BMW car plant in San Luis Potosí. BMW said the invest­ment would cre­ate 1,000 jobs. The $369bn in green sub­sidies have sparked a tense dip­lo­matic row with Europe, which argues they could unfairly draw invest­ment away and breach World Trade Organ­iz­a­tion rules.

BMW said the plant was planned before the Infla­tion Reduc­tion Act law and that «pro­duc­tion fol­lows the mar­ket» for invest­ment con­sid­er­a­tions. On top of the prox­im­ity to the US mar­ket and its con­sumer tax perks for EVs, BMW said it would also bene­fit from Mex­ico’s labour force and its future sup­ply of lith­ium. At a recent sum­mit in Mex­ico City, the lead­ers of the US, Mex­ico and Canada reaf­firmed their com­mit­ment to mak­ing the region of almost 500mn people a clean energy power­house. While the IRA excluded European allies from its green sub­sidies, the bill exten­ded EV final assembly tax cred­its to Mex­ico and Canada.

www.sba.tax

Labels:

Comments

  1. Amalia4 February 2023 at 14:10

    It's time to stop crying over spilled milk and find ways to attract companies to the EU. I'm getting tired of EU officials blaming the US for those green subsidies. Just start finding solutions to this and stop complaining!

    ReplyDelete
    Replies
    1. Oscar4 February 2023 at 15:21

      EU officials will keep this up for years to come, blaming the US for their own mistakes. What's done is done now. Find ways to deal with these things or just step down and let others take care of things.

      Delete
  2. Norman4 February 2023 at 16:32

    Some countries like Mexico will win big from the green subsidies and others (from the EU) will lose unless they do something about it. Of course companies are going to go where labor is cheaper and where they get financial benefits.

    ReplyDelete

Post a Comment

Cloud Bookkeeping

HS2 cost cuts new routes and add delays.

 Trans­port depart­ment offi­cials have begun work on «Project Sil­ver­light» sug­gest­ing the high­speed rail scheme might face four addi­tional years of delay. The planned High Speed 2 rail line faces fur­ther delays of up to four years and more cuts to the project under plans being drawn up by min­is­ters to rein in its bal­loon­ing costs. The extra delays to the coun­try’s biggest infra­struc­ture project would mean that it would not be com­pleted until as late as 2045 — 12 years after ori­gin­ally planned. «This is a func­tion of infla­tion; we are hav­ing to find huge sav­ings because the cost of everything the depart­ment is already doing will have become so much more expens­ive by then,» said one gov­ern­ment offi­cial. In Octo­ber, the FT repor­ted that the Treas­ury had asked HS2’s man­age­ment team to identify poten­tial cuts or «scope reduc­tions» to the high-speed line. Trans­port depart­ment offi­cials have sub­sequently begun work on Project Sil­ver­light aimed at fi...
4 comments
Read more

Google has launched its Bard chat­bot.

  Google has launched its Bard chat­bot in a move to rival OpenAI’s pop­u­lar Chat­GPT, as it seeks to make up lost ground in the race to com­mer­cial­ise gen­er­at­ive arti­fi­cial intel­li­gence tech­no­logy. Google said that Bard, which provides answers to text­based ques­tions, will be run sep­ar­ately from its Google Search engine. In recent weeks, gen­er­at­ive AI has also been integ­rated into widely used pro­ductiv­ity applic­a­tions, such as Google’s Work­space includ­ing Google Docs and Gmail, and Microsoft’s Office 365 soft­ware, as well as into pop­u­lar apps such as Duolingo, allow­ing mil­lions of people to start inter­act­ing with the tech­no­logy. «We want to get feed­back and gradu­ally phase up the num­ber of people who have access to Bard, and the reason for that is we want to be able to test and learn from that before we roll it out very widely,» said Zoubin Ghahramani, vice-pres­id­ent of Google Research. Bard is built on top of Google’s AI tech­no­logy known a...
3 comments
Read more

Doubt on CS's collateral.

  Credit Suisse provided an emergency $140mn loan to Greensill Capital based partly on invoices to companies that deny ever doing the business stated on the documents. The Swiss bank provided the loan in October 2020, less than five months before the collapse of Greensill, a supply chain finance firm that counted former British prime minister David Cameron as a senior adviser. Invoices issued by metals magnate Sanjeev Gupta’s Liberty Commodities and sold to Greensill formed part of the collateral for the loan, according to documents seen by the Financial Times and people familiar with the transaction. Yet several of the parties named on the invoices have told the FT they did no business with Liberty. GFG has consistently denied any wrongdoing. Credit Suisse’s loan had a clause dictating that the collateral value had to be equal to or greater than the $140mn borrowed. The terms of the debt agreement only allowed invoices on Green-sill’s balance sheet to count towards this tally if t...
2 comments
Read more